You Have the Following Data on Three Stocks: If You

question 66

Multiple Choice

You have the following data on three stocks: If you are a strict risk minimizer, you would choose Stock ____ if it is to be held in isolation and Stock ____ if it is to be held as part of a well-diversified portfolio.

• A) A; A.
• B) A; B.
• C) B; A.
• D) C; A.
• E) C; B.

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Definitions:

High Performance

Achieving significantly better outcomes or efficiencies, usually in the context of organizational or individual work, through effective strategies and practices.

Satisfaction

The feeling of pleasure or contentment arising from the fulfillment of one's desires, expectations, or needs.

Mechanistic Designs

Mechanistic designs are centralised with many rules and procedures, a clear-cut division of labour, narrow spans of control and formal coordination.

Organic Designs

Approaches to structuring organizations that foster decentralization, allowing for quick adaptation and autonomy among teams.