You Have the Following Data on Three Stocks If You Are a Strict Risk Minimizer, You Would Choose

question 45

Multiple Choice

You have the following data on three stocks: $$\begin{array} { l l l } \underline{\text { Stock } }& \underline{\text { Standard Deviation }} & \underline{\text { Beta } }\\\text { A } & 20 \% & 0.59 \\\text { B } & 10 \% & 0.61 \\\text { C } & 12 \% & 1.29\end{array}$$ 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:

Health Action Process Approach

A psychological theory that models how people come to the decision to take action on their health and how they implement and maintain those actions.

Motivational Phase

In the health action process approach, the stage in which a person develops an intention to pursue a health-related goal.

Volitional Phase

The stage of decision-making or behavior that involves conscious choice and willful effort.

Health Belief Model

A psychological model that explains and predicts health behaviors by focusing on the attitudes and beliefs of individuals regarding health issues.