An investor considering a security for a portfolio will regard as important
A) The security's return
B) The security's risk measured as the variability of its returns
C) The correlation of its returns with the returns of other securities in the portfolio
D) All of the above

Question

Quizplus · Accepted Answer

All of the options listed are important factors for an investor to consider when evaluating a security for inclusion in a portfolio. The return of the security indicates the potential profit, the risk measured as the variability of its returns provides insight into the security's stability, and the correlation of its returns with other securities in the portfolio helps in understanding how the security will contribute to the portfolio's overall risk and return profile.

An Investor Considering a Security for a Portfolio Will Regard