What Is the Term for the Proportion of Funds Invested

question 56

Multiple Choice

What is the term for the proportion of funds invested in each of several investment alternatives?

• A) spreading
• B) shorting
• C) margin buying
• D) asset allocation
• E) diversification

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Definitions:

Actor-Observer Bias

The tendency to attribute one's own actions to external factors while attributing others' actions to their personality or disposition.

External Causes

Factors or events outside an individual that are believed to influence their behavior or psychological state.

Car Accident

An unexpected event involving motor vehicles, resulting in damage, injury, or fatalities, often requiring legal and insurance intervention.

Internal-Stable

Attribute of an explanation or attribution where an individual perceives the cause of an event as due to a stable, internal characteristic.