Which of the Following Was Mentioned as a Strategy That

question 133

Multiple Choice

Which of the following was mentioned as a strategy that is often used by test-wise students?

• A) Multiple-choice alternatives containing the words "always," "never," "universally," and "totally" are usually correct.
• B) On multiple-choice tests, rule out the obviously incorrect answers immediately.
• C) On multiple-choice tests, don't change your first answer because it is usually correct.
• D) Multiple-choice alternatives containing qualitative terms such as "tend," "often," and "generally" are usually incorrect.

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Definitions:

Risky Portfolio

A collection of investments that has a higher standard deviation, but potentially higher returns.

Unsystematic Portion

The segment of risk in an investment portfolio that can be mitigated through diversification, specific to individual securities.

Expected Return

The weighted average of all possible returns for an investment, with weights representing the probabilities of each outcome.

Total Risk

The entire range of uncertainties including market and specific risks that affect the value of an investment.