You Are Thinking of Adding One of Two Investments to an Already

question 28

Multiple Choice

You are thinking of adding one of two investments to an already well diversified portfolio. Security A Security B
Expected return = 12% Expected return = 12%
Standard deviation of returns = 20.9% Standard deviation of returns = 10.1%
Beta = .8 Beta = 2
If you are a risk-averse investor

• A) security A is the better choice.
• B) security B is the better choice.
• C) either security would be acceptable.
• D) cannot be determined with information given.

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Definitions:

Christ with the Sick around Him

Refers to an artwork or scene that depicts Jesus Christ surrounded by individuals seeking healing or comfort.

Engraving and Etching

Artistic techniques used for printmaking, with engraving involving carving into a hard surface and etching using acid to create designs on a metal plate, both resulting in a high level of detail in prints.

Vermeer

Johannes Vermeer was a Dutch painter renowned for his masterful use of light and color, primarily focusing on domestic interior scenes of middle-class life.

Woman Holding a Balance

A 17th-century painting by Johannes Vermeer that depicts a serene woman weighing gold in a balance, symbolizing moral judgment and temperance.