The Reason for Choosing to Invest in an Index Is

question 44

Multiple Choice

The reason for choosing to invest in an index is:

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

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Definitions:

Bell Curve

A graphical representation of a normal distribution of data, characterized by a symmetric, bell-shaped curve.

Test-Retest Reliability

The consistency of a psychological test or assessment over time, measured by administering the same test to the same subjects at two different points in time.

Personality Dimensions

Fundamental traits or characteristics used to describe and differentiate individuals' personalities.

Reliability Correlation

A statistical measure that assesses the consistency and stability of a psychological test or measurement over time.