When a Security Is Added to a Portfolio the Appropriate

question 57

Multiple Choice

When a security is added to a portfolio the appropriate return and risk contributions are:

• A) the expected return of the asset and its standard deviation.
• B) the most probable return and the beta.
• C) the expected return and the beta.
• D) the most probable return and its standard deviation.

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Definitions:

Storge Style

A style of love often characterized by deep affection and friendship that develops over time.

Altruistic

Showing selfless concern for the well-being of others; the opposite of selfish.

Self-sacrificing

The act of giving up one's own needs, desires, or wellbeing for the benefit of others or for a greater cause.

Agape

Love that is altruistic and self-sacrificing and is directed toward all humankind.