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You Are Thinking of Adding One of Two Investments to an Already

Question 112

Multiple Choice

You are thinking of adding one of two investments to an already well- diversified portfolio. You are thinking of adding one of two investments to an already well- diversified portfolio. If you are a risk-averse investor,which one is the better choice? A) Security A B) Security B C) Either security would be acceptable because they have the same beta. D) Security B,but only if Security B's required return is greater than 12% If you are a risk-averse investor,which one is the better choice?


A) Security A
B) Security B
C) Either security would be acceptable because they have the same beta.
D) Security B,but only if Security B's required return is greater than 12%

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