The Practice of a Message Receiver Giving Back in His

question 12

Multiple Choice

The practice of a message receiver giving back in his or her own words what he or she believes a sender said is called ________.

• A) channeling
• B) decoding
• C) encoding
• D) paraphrasing

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Definitions:

Portfolio Effect

The impact of diversifying investments across different assets, which can reduce risk without proportionately lowering expected returns.

Investment Decisions

Choices made by individuals or firms regarding the allocation of resources to different assets or projects with the expectation of earning a return.

Correlation

A numerical indicator that captures how much two variables move in tandem, showing both how strong their linkage is and in what direction it lies.

Risk-adjusted Discount Rates

Discount rates that are adjusted to reflect the risk of an investment, used in calculating the present value of expected future cash flows.