You Are Considering Adding a New Security to Your Portfolio

question 4

Multiple Choice

You are considering adding a new security to your portfolio.In order to decide whether you should add the security you need to know the security's _______.
I.expected return
II.standard deviation
III.correlation with your portfolio

• A) I only
• B) I and II only
• C) I and III only
• D) I, II and III

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Definitions:

Money Supply

The total amount of monetary assets available in an economy at a specific time.

Credit Cards

Financial instruments issued by banks allowing cardholders to borrow funds with which to pay for goods and services with the promise to repay the bank within a certain timeframe.

Smoot-Hawley

Refers to the Smoot-Hawley Tariff Act of 1930, which raised U.S. tariffs on over 20,000 imported goods.

Imports

Products or resources that are bought from foreign countries to meet domestic demand or consumption.