Suppose you have all of your assets tied up in a single investment with an expected return of 8% and a standard deviation of 10%. Your investment advisors suggest adding a new investment with an expected return of 7% and a standard deviation of 12%. This seems like:

 A. a good idea because more investments are always better.

 B. a bad idea because it will increase your risk.

 C. Cannot be determined from the information given.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The addition of a new investment can af... View the full answer