The First Step of the Investment Process Is to

question 5

Multiple Choice

The first step of the investment process is to

• A) set investment policy
• B) perform security analysis.
• C) evaluate portfolio performance.
• D) construct a portfolio.

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Definitions:

Equally Likely

A term used in probability to describe outcomes that have the same chance of occurring.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Mutually Exclusive

Referring to events that cannot both occur at the same time, implying no overlap in their possible outcomes.

Probability

The measure of the likelihood that an event will occur, quantified as a number between 0 and 1, where 1 represents certainty.