A is correct. According to the property of translation invariance, adding an amount of cash, K, into a portfolio will decrease the risk measure by K. Therefore, choice A correctly describes translation invariance. B is incorrect. This is a test for subadditivity. According to the property of subadditivity, given two portfolios A and B, the risk measure for the portfolio formed by merging A and B will be less than or equal to the sum of the risk measures for A and B. C is incorrect. This is a test for monotonicity. According to the property of monotonicity, a portfolio that produces consistently worse results in comparison to another portfolio will have a higher risk measure. D is incorrect. This is a test of homogeneity. According to the property of homogeneity, changing the size of a portfolio by multiplying the amount of all components by λ results in the risk measure being multiplied by λ.