The Reason for Choosing to Invest in an Index Is

question 84

Multiple Choice

The reason for choosing to invest in an index is:

• A)you get to choose which specific company stocks to buy.
• B)the rates of return earned from the index are no worse than what can be earned by picking specific stocks.
• C)you have a lot of expertise when it comes to investing in an index.
• D)you want to concentrate your investments in a particular industry.

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Definitions:

Sociocultural Approach

A psychological perspective that explores how social and cultural environments influence behavior and mental processes.

Biological Approach

An approach to psychology focusing on the body, especially the brain and nervous system.

Medical Model

The view that psychological disorders are medical diseases with a biological origin.

Psychological Disorders

Psychological disorders are patterns of behavioral, cognitive, or emotional symptoms that impact multiple areas of life, leading to distress for the person experiencing these symptoms.