Which of the Following Will Tend to Result in the Least

question 281

Multiple Choice

Which of the following will tend to result in the least variation in the expected real rate of return from the ownership of stocks?

• A) ownership of a single stock for a short period of time
• B) ownership of a single stock over a lengthy period of time
• C) ownership of stocks from a specific sector (for example, the automobile industry) over a lengthy period of time
• D) ownership of a diverse set of stocks (the Standard & Poor's 500, for example) over a lengthy period of time

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Definitions:

Relations-Oriented

A leadership or management style that emphasizes maintaining positive relationships within a team or organization.

Diagnose

To diagnose means to identify the nature of a problem, condition, or disease through examination of the symptoms or available data.

Meaningfulness

The perception of having a purposeful and significant impact through one's actions or work.

Performing Important

The act of carrying out tasks or roles that have significant value or impact within a particular context.