You Have the Following Data on Three Stocks As a Risk Minimizer, You Would Choose Stock ____ If

question 18

Multiple Choice

You have the following data on three stocks: $$\begin{array} { c c c } \text { Stock } & \text { Standard Deviation } & \text { Beta } \\\text { A } & 0.15 & 0.79 \\\text { B } & 0.25 & 0.61 \\\text { C } & 0.20 & 1.29\end{array}$$ As a 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; B.
• B) B; C.
• C) C; A.
• D) C; B.
• E) A; A.

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Definitions:

Autonomy

The degree to which a job provides an employee with discretion and independence to schedule their work and determine how it is done.

Intrinsic

Refers to motivation or value driven by internal satisfaction rather than material rewards.

Extrinsic

Refers to motivation driven by external rewards, such as money or praise, rather than internal satisfaction.

Compensation Strategy

The design and implementation of pay structures and benefits aimed at achieving an organization’s objectives and attracting, motivating, and retaining employees.