According to Langer, a Flexible State of Mind and Openness

question 35

Multiple Choice

According to Langer, a flexible state of mind and openness to novelty are characteristics of what positive psychological construct?

• A) optimism
• B) hope
• C) resilience
• D) mindfulness

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Definitions:

Risk Premium

The risk premium is the excess return that an investor requires for holding a risky asset over a risk-free asset, compensating for the risk of the investment.

Risk-free Rate

The theoretical rate of return on an investment with zero risk, often represented by government bonds.

Risk Premium

The extra return above the risk-free rate that investors demand for choosing to invest in a riskier asset.

Well-diversified Portfolio

An investment portfolio strategically crafted to include a variety of asset classes in order to minimize risk.