If the Addition of a Foreign Security to the Portfolio

question 39

True/False

If the addition of a foreign security to the portfolio of the investor decreases the expected return for a given level of risk, then the security adds value to the portfolio.

---

Definitions:

Linear Perspective

A technique in art and drawing that creates the illusion of depth on a flat surface by converging parallel lines towards a single point on the horizon.

Biopsychosocial Approach

A holistic perspective that acknowledges that biological, psychological (which includes emotions, thoughts, behaviors), and social (societal and environmental) factors all play a significant role in human functioning in the context of disease or illness.

Parapsychology

The study of psychic phenomena and other paranormal claims, which are often outside the realm of conventional psychology.

Gestalt Principles

A theory in psychology that proposes objects are viewed holistically rather than as a sum of their parts.