Under What Condition Will Adding a Security with a High

question 32

Essay

Under what condition will adding a security with a high standard deviation decrease the risk of a portfolio?

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Definitions:

Best Interest

A principle that guides decisions by prioritizing the benefits and welfare of those affected over other considerations.

Society

A community of individuals living together and interacting under shared norms, values, and institutions.

Profit Maximizes

The technique a firm uses to determine the most profitable price and quantity of production.

Positive Profits

The financial gain that occurs when the total revenues earned by a firm exceed its total costs of production, indicating successful business operations.