Which Statement Is Consistent with the Strategy of Diversification in Stock

question 24

Multiple Choice

Which statement is consistent with the strategy of diversification in stock investment?

• A) Buy all stocks in the stock market.
• B) Pick stocks that you believe are undervalued.
• C) Buy a mutual fund of a broad stock market index.
• D) Buy and sell a stock at the same time.

---

Definitions:

Extraversion

A personality trait characterized by outward-turning behaviors, such as sociability, enthusiasm, and high levels of activity.

Conscientiousness

A personality trait characterized by organization, dependability, self-discipline, and a goal-directed behavior.

Credibility

The quality of being believable or worthy of trust, often evaluated based on the source's reliability, expertise, and trustworthiness.

Elaboration Likelihood Model

A theory in psychology that explains how the likelihood of persuasive communication can lead to attitude change through central and peripheral routes of processing.