[单选题]

An investor holds a portfolio of two stocks, ABC Inc., and XYZ Corp., and is considering adding the stock of New Company to her portfolio. For diversification purposes, the most important factor for her consider where making this decision is:

A.New Company's expected return relative to the returns of ABC and XYZ.

B.The average covariance of New Company's returns with the returns of ABC and XYZ.

C.The total variance of New Company's returns relative to the variance of returns for ABC and XYZ.

参考答案与解析:

相关试题

A portfolio manager is required to sell 31,250 shares of XYZ Inc. in two months. She is concerned th

[单选题]A portfolio manager is required to sell 31,250 shares of XYZ Inc. in two mo

  • 查看答案
  • An investor with $5000 to invest believes that the price of ABC Corp. stock will appreciate by $7 to

    [单选题]An investor with $5000 to invest believes that the price of ABC Corp. stock

  • 查看答案
  • An investor currently holds the following portfolio of common stocks:<br /><img border=&quo

    [单选题]An investor currently holds the following portfolio of common stocks:The ex

  • 查看答案
  • An investor currently holds a portfolio that is expected to return 15 percent. The investor is plann

    [单选题]An investor currently holds a portfolio that is expected to return 15 perce

  • 查看答案
  • An investor is short a portfolio of stocks that has volatility and return characteristics similar to

    [单选题]An investor is short a portfolio of stocks that has volatility and return c

  • 查看答案
  • Fiona Acquisition, Inc., is considering the purchase of Kingbet Company. The acquisition would requi

    [单选题]Fiona Acquisition, Inc., is considering the purchase of Kingbet Company. Th

  • 查看答案
  • Goodeal, Inc., is considering the purchase of a new material handling system for a cost of $15 milli

    [单选题]Goodeal, Inc., is considering the purchase of a new material handling syste

  • 查看答案
  • Goodeal, Inc., is considering the purchase of a new material handling system for a cost of $15 milli

    [单选题]Goodeal, Inc., is considering the purchase of a new material handling syste

  • 查看答案
  • According to capital asset pricing model (CAPM), if an investor holds a portfolio that lies on the c

    [单选题]According to capital asset pricing model (CAPM), if an investor holds a por

  • 查看答案
  • An investor purchases the bonds of JLD Corp., which pay an annual coupon of 10% and mature in 10 yea

    [单选题]An investor purchases the bonds of JLD Corp., which pay an annual coupon of

  • 查看答案
  • An investor holds a portfolio of two stocks, ABC Inc., and XYZ Corp., and is considering adding the