The Theory of Portfolio Selection Leads to the Conclusion That

question 20

Multiple Choice

The theory of portfolio selection leads to the conclusion that

• A)there is one best asset for each investor.
• B)there is one best asset for all investors.
• C)savers should allocate their savings among many different assets.
• D)savers should concentrate their savings in as few assets as possible.

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Definitions:

Tangible Effect

A clear and definite impact or result that can be physically observed or measured.

Barriers

Obstacles that prevent movement, access, or progress.

Communication

The process of exchanging information, ideas, thoughts, feelings, and messages between individuals or groups.

Information Processing

The methods by which individuals perceive, analyze, manipulate, store, and recall information in their brain.