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Which of the Following Stresses

question 474

Multiple Choice

Which of the following stresses
(1) high levels of competence, integrity, and responsibility;
(2) respect for people's rights to privacy, dignity, confidentiality, and personal freedom; and
(3) protection of the client's welfare?


Definitions:

Diversification Effects

The reduction in risk achieved by investing in a variety of assets, thus minimizing the impact of poor performance from any single asset.

Portfolio A

A specific collection of financial assets such as stocks, bonds, cash equivalents, and their mutual funds, owned by an individual or an institutional investor.

Portfolio B

Portfolio B is not a specific term but could refer to a theoretical or actual portfolio of investments selected as a part of an investment strategy or for analysis.

Variance

A measure of the distribution’s variability. It is the sum of the squared deviations about the expected value.

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