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You have been building a portfolio over time and wish to add one more security to increase diversity. You are trying to choose between security
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You have been building a portfolio over time and wish to add one more security to increase diversity. You are trying to choose between security A and security B. Given the following, which one would you prefer and why?
a. Investment A because it has the highest expected return.
b. Investment A because it has the lowest relative risk.
c. Investment B because it has the lowest absolute risk.
d. Investment B because it has the lowest coefficient of variation.
e. Investment A because it has the highest coefficient of variation.
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