Which of the Following Guidelines Are Appropriate for Inclusion in a Portfolio

question 83

Multiple Choice

Which of the following guidelines are appropriate for inclusion in a portfolio management policy?
I. Ddiversify among different types of securities and across industry and geographic lines.
II. Determine the risk level and financial situation of the individual investor.
III. Utilize beta to help align the portfolio to the risk level of the investor.
IV. Minimize the standard deviation of each security in the portfolio.

• A) I, II and IV only
• B) II, III and IV only
• C) I, II and III only
• D) I, II, III and IV

---

Definitions:

Psychological Risk

The potential for a product or service to evoke negative emotional states or threaten one's self-concept.

Public or Private

Categories that distinguish between entities or spaces owned and managed by the government (public) and those owned by individuals or corporations (private).

High-Ticket Items

Products or services that are of high value and price, often considered luxury or premium goods, requiring significant purchasing decisions.

Substantial Expenditures

Large amounts of money spent typically on projects, goods, or services that require significant investment.