What Matters to a Diversified Investor

question 18

Multiple Choice

What matters to a diversified investor?

• A) Systematic risk.
• B) Unsystematic risk.
• C) Diversifiable risk.
• D) Global risk.
• E) Foreign exchange risk.

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Definitions:

Familiarity Principle

The psychological phenomenon where people tend to develop a preference for things merely because they are familiar with them.

Delay Gratification

The strength to forego an immediate payoff for the sake of a more substantial reward at a later time.

Achievement Motivation

The drive to excel, achieve in relation to a set of standards, or pursue success in tasks.

Social Isolation

A state where an individual lacks a sense of social belonging, social engagement, and fulfilling relationships, often leading to feelings of loneliness and depression.