To Diversify, a Person Who Already Holds Stocks That Move

question 206

Multiple Choice

To diversify, a person who already holds stocks that move in the opposite direction of the stock market as a whole should:

• A) always buy more of the same stocks.
• B) buy stocks that move in the same direction of the stock market as a whole.
• C) buy stocks that have about the same expected returns as the stocks she already holds.
• D) sell all her stocks immediately.

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Definitions:

Two-way Communication

The process of exchanging information where both parties are able to send and receive messages, promoting interaction and feedback.

Employee Empowerment

is the practice of giving employees the authority, resources, and responsibility to make decisions and contribute to the company’s success.

Boss-centered

A leadership or organizational style where decision-making and authority are centralized around a single leader or a small group of leaders.

Decision-making Process

The Decision-making Process is a step-by-step approach that helps individuals and organizations make choices by identifying options, evaluating them, and selecting one.