Rather Than Invest in the Stock of Just One or Two

question 60

Multiple Choice

Rather than invest in the stock of just one or two companies, you purchase a variety of different types of investments in order to minimize risk. What is this approach known as?

• A) insider trading
• B) investment apportionment
• C) asset allocation
• D) asset turnover

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Definitions:

Perceptual Vigilance

The tendency for individuals to notice stimuli that are relevant to their current needs or desires more than irrelevant stimuli.

Stimuli Registered

The process by which sensory input is received, recognized, and processed by the brain.

Gestalt Psychology

A psychological approach that emphasizes the whole of anything is greater than its parts, focusing on perception and problem-solving.

Holistic Processing

Holistic processing is perceiving an object or scene as a whole rather than as a collection of individual components, often used in the context of recognizing faces or visual patterns.