Which of the Following Individuals Has a Poor Diversification Strategy

question 106

Multiple Choice

Which of the following individuals has a poor diversification strategy? Someone who buys:

• A) stock in gun manufacturing, ammunitions, and rifle companies.
• B) stock in textbook publishing, tea and coffee production, and the technology sector.
• C) T-bills, corporate bonds, and technology stocks.
• D) government bonds, technology stocks, and agricultural stocks.

Examine the influence of historical events and life experiences on personality and life outcomes.

Understand the mechanisms behind personality trait changes and interventions for promoting such changes.

Identify factors contributing to personality changes in adulthood.

Recognize methods for developing self-control and managing stress.

---

Definitions:

Uncovered Interest Parity

A theory in economics that posits the difference in interest rates across two countries will match the anticipated shift in exchange rates between their currencies.

Interest Rate Parity

A theory stating that the difference between the interest rates of two countries is equal to the differential between the forward exchange rate and the spot exchange rate of their currencies.

Forward Exchange Rate

An agreed exchange rate for a currency transaction that will occur at a future date.

Spot Exchange Rate

The current price for exchanging one currency for another, available for immediate delivery.