The Most Import Criteria When Adding New Investments to a Portfolio

question 77

Multiple Choice

The most import criteria when adding new investments to a portfolio is the

• A) Expected return of the new investment.
• B) Standard deviation of the new investment.
• C) Correlation of the new investment with the portfolio.
• D) Choices a and
• E) All of the above are equally important.

---

Definitions:

1/1000

Often refers to a dilution factor or concentration, such as in medications, indicating one part per thousand.

Hector

In this context, Hector does not refer to a commonly understood key term related to a specific field of knowledge.

Percentage

A rate, number, or amount in each hundred, represented by the symbol “%,” used to express proportions and ratios.

Hundred

A numerical value representing ten groups of ten, or the number following ninety-nine.