Which of the Following Investment Instruments Would a Risk-Averse Individual

question 197

Multiple Choice

Which of the following investment instruments would a risk-averse individual choose?

• A) stocks that are negatively correlated with the rest of one's portfolio
• B) agricultural stocks in a foreign agricultural economy
• C) oil stocks
• D) technology stocks

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Definitions:

Cognitive Architecture

The underlying structure and processes that support cognition and mental activities, including memory, perception, and problem-solving capabilities.

Developmental Permanence

The concept that certain developmental milestones or effects, once achieved or established, will remain stable over time.

Sensory Store

A component of memory that briefly holds incoming sensory information from the environment, allowing the brain to process it.

Three-System Model

A psychological framework that divides the cognitive processes into three systems: the behavioral, cognitive, and emotional systems.