Which of the Following Is NOT True Regarding Individual Investor

question 69

Multiple Choice

Which of the following is NOT true regarding individual investor behavior?

• A)Individual investors fail to diversify their portfolios adequately.
• B)A vast majority of individual investors hold fewer than 10 stocks in their portfolio.
• C)Employees tend to overinvest in their company's own stock.
• D)Individual investors' portfolios consistently outperform the market averages.

Recognize the primary features and structures within groups, including power and communication structures.

Explain the concept of group cohesiveness and its implications for group dynamics.

Understand the impact of group discussion on decision-making and opinion formation.

Differentiate between stereotypes, prejudice, and discrimination and understand their psychological basis.

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Definitions:

Contribution Margin

The amount by which sales revenue exceeds variable costs, indicating how much revenue contributes towards covering fixed costs and generating profit.

Outside Supplier

A third-party company or entity that provides products or services to another company, often used when in-house production or provision is not feasible.

Relevant Cost

Costs that will be affected by a decision in the future and therefore should be considered in the decision-making process.

Direct Labor Cost

Expenses associated with the wages and benefits of employees who are directly involved in the manufacturing process.