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:

Scientists Infer

The process by which scientists draw conclusions from data and observations to explain phenomena.

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The physical and chemical structure of deoxyribonucleic acid (DNA), which carries genetic information in living organisms and viruses, typically consisting of two strands that wind around each other to form a double helix.

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The two primary factors that influence an individual's development, including genetic makeup and external factors like upbringing and culture.