An Investor Will Diversify His Portfolio to Reduce Risk

question 203

True/False

An investor will diversify his portfolio to reduce risk.

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Definitions:

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired: a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Reinforcement

In behavioral psychology, an event that strengthens or increases the likelihood of a behavior by providing a consequence an individual finds rewarding.

Microsystem

In bioecological systems theory, the innermost level of context, which includes an individual’s immediate physical and social environment.

Mesosystem

In bioecological systems theory, the relations and interactions among microsystems.