Table 8.1 -If You Were to Create a Portfolio Designed to Reduce

question 117

Multiple Choice

Table 8.1
-If you were to create a portfolio designed to reduce risk by investing equal proportions in each of two different assets, which portfolio would you recommend? (See Table 8.1)

• A) Assets A and B
• B) Assets A and C
• C) none of the available combinations
• D) cannot be determined

---

Definitions:

Connectives

Logical operators used in logic and mathematics to connect two or more propositions or sentences to form a more complex statement.

Main Connective

In a logical expression, the operator that determines the overall value of the expression, acting as the primary link between components.

Atomic Statements

Simplest forms of statements that can neither be broken down into more elementary propositions nor contain any logical connectors.

Main Components

The most vital elements or parts that constitute a system or mechanism, essential for its functionality.