Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 26, 2024

What is the most important criteria when adding new securities to a portfolio? selection of the risk-free asset. standard deviation of the new investment. variance

What is the most important criteria when adding new securities to a portfolio?

		selection of the risk-free asset.
		standard deviation of the new investment.
		variance of the risk-free asset.
		expected return of the new investment.
		correlation of the new investment with the portfolio.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Institutional Asset Management

Authors: Frank J Fabozzi, Francesco A Fabozzi

1st Edition

9811220034, 9789811220036

More Books

Students also viewed these Finance questions

Question

★★★★★

Students frequently perform the following type of calculation to introduce a zero into a matrix: However, 3R2 - 2R1 is not an elementary row operation. Why not? Show how to achieve the same result...

Answered: 1 week ago

Question

★★★★★

=+3. Which cognitive skills does Warrior possess that are particular relevant in her role as CEO of NextEv?

Answered: 1 week ago

Question

★★★★★

9. What is superstitious behavior and how does it relate to preperformance routines?

Answered: 1 week ago

Question

★★★★★

A sample of the 2011 MTF survey suggests that adolescents are divided in terms of their attitudes toward others trying marijuana at least once. In fact, 49.3% of the 1,202 respondents who answered...

Answered: 1 week ago

Question

★★★★★

Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$ -$ 0 1 -234 359,000 36,000 56,000 56,000 431,000 45,500 23,100 21,100 18,600 13,700 Whichever ject you...

Answered: 1 week ago

Question

★★★★★

How does the Chinese government limit the use of the Chinese currency, the RMB, on the global currency markets?

Answered: 1 week ago

Question

★★★★★

An important component of working with clients in any setting is understanding the problems that policies are designed to address, the details of how the policy is designed to affect the problem...

Answered: 1 week ago

Question

★★★★★

In addition to hardware like mobile phones, websites like Google, and software like Office products, there are many different tools that teachers and students can use to facilitate teaching and...

Answered: 1 week ago

Question

★★★★★

QQI Level 5 - 5N2770 - Care Skills - Question 1: Description of the person chosen: A comprehensive description of the person, their impairment, and their needs - physical, emotional, social,...

Answered: 1 week ago

Question

★★★★★

The Arco Appliance Company uses a Kanban system to make flanges that are a component used in several of their products. The waiting time for a container of the flanges during production is 0.40 day;...

Answered: 1 week ago

Question

★★★★★

Question An amusement park has a marginal cost function C x 1000e 5 where x represents the number of tickets sold an a marginal revenue function given by R x 60 0 1x Assuming that the park has no...

Answered: 1 week ago

Question

★★★★★

=+3. When considering an investment in a mutual fund, would you consider the social responsibility of the companies in which the fund invested?

Answered: 1 week ago

Question

★★★★★

=+1. Do you own any shares of a company? If so, do you vote at the companys annual general meeting (either in person or by proxy)? Is it important for shareholders to be actively involved with the...

Answered: 1 week ago

Question

★★★★★

=+2. What are your thoughts about the UK legislation (outlined above) that requires companies to produce a remuneration report every year, which then must be voted on at the AGM? Is it a good idea or...

Answered: 1 week ago

Previous Question Next Question