If Investors Were Risk Averse, They Would Want to

question 37

Multiple Choice

If investors were risk averse, they would want to

• A) maximize the return they are receiving compared to the standard deviation of the returns on the particular security.
• B) invest in technology stocks.
• C) minimize risk, i.e., standard deviation, for the amount of return they are receiving on an investment.
• D) seek the highest return they could find.

Understand the application of psychological principles in educational settings.

Associate clinical psychology with the study and treatment of psychological disorders.

Define the role of social psychology in understanding individual behavior in social contexts.

Distinguish between counseling psychology and other psychological specialties with respect to their goals and methods.

---

Definitions:

Accessory Organ

An organ that supports the function of major organs and systems, such as the pancreas in digestion.

Muscularis Externa

The layer of muscle in the gastrointestinal tract wall that is responsible for gut movement through peristalsis.

Serosa

A smooth membrane consisting of a thin layer of cells that secrete serous fluid, lining the outer surface of internal organs and body cavities.

Mucosa

The moist, inner lining of some organs and body cavities, such as the nose, mouth, lungs, and stomach, involved in absorption and secretion.