Which of the Following Is Most Likely to Occur as You

question 79

Multiple Choice

Which of the following is most likely to occur as you add randomly selected stocks to your portfolio,which currently consists of 3 average stocks?

• A) The diversifiable risk of your portfolio will likely decline,but the expected market risk should not change.
• B) The expected return of your portfolio is likely to decline.
• C) The diversifiable risk will remain the same,but the market risk will likely decline.
• D) Both the diversifiable risk and the market risk of your portfolio are likely to decline.
• E) The total risk of your portfolio should decline,and as a result,the expected rate of return on the portfolio should also decline.

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Definitions:

Humanistic Psychologists

Psychologists who focus on the growth potential of healthy individuals, emphasizing personal growth and self-fulfillment.

Potential for Growth

Refers to the ability or capacity of an individual, organization, or system to develop, expand, or improve over time.

Attention

The brain's method of zeroing in on a certain feature of the surroundings and neglecting other information.

Cognitive Revolution

A period in the 20th century that marked a significant change in the way psychologists understood and studied the mind, emphasizing internal mental processes.