Those Needs Which Are Basic to Survival and Which Must

question 315

Multiple Choice

Those needs which are basic to survival and which must be satisfied first are referred to as

• A) physiological needs.
• B) safety needs.
• C) social needs.
• D) personal needs.
• E) self-actualization needs.

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Definitions:

Required Return

The minimum rate of return on an investment that is necessary for an investor to consider making that investment.

Market Risk

The risk of losses in positions arising from movements in market prices.

Diversify

The strategy of spreading investments across various financial assets, industries, or other categories to reduce risk.

Capital Asset Pricing Model

A model that describes the relationship between systematic risk and expected return for assets, particularly stocks; it is used to estimate the cost of equity.