If You Are Risk Averse, You Should Choose an Asset

question 66

Multiple Choice

If you are risk averse, you should choose an asset allocation that is:

• A)more heavily weighted toward stocks.
• B)more heavily weighted toward bonds.
• C)equally weighted toward cash and stocks.
• D)all stocks.

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Definitions:

Branched-Chain Hydrocarbons

Organic molecules consisting of carbon and hydrogen atoms arranged in a branched structure.

Ester Linkages

Chemical bonds formed between an acid and an alcohol with the elimination of water, commonly found in fats and biological molecules like DNA.

Peptidoglycans

A polymer consisting of sugars and amino acids that forms a mesh-like layer outside the plasma membrane of most bacteria, providing structural support and shape.

Archaea

One of the two prokaryotic domains. The absence of peptidoglycan in their cell walls sets them apart from the bacteria. Compare with bacteria.