An Investor May Reduce Risk By​

question 20

Multiple Choice

An investor may reduce risk by​
1) selecting low beta stocks
2) constructing a diversified portfolio
3) selecting high beta stocks

• A)​1 and 2
• B)​1 and 3
• C)​2 and 3
• D)​only 1

---

Definitions:

Established Group

A group that has settled into a recognizable structure or role within a society or organization, often with a clear identity and longevity.

Invading Group

A population that enters a territory or community with the intention of taking control, often causing conflict or disruption.

Ecological Theory

A framework for understanding the complex interactions between individuals and their environments, emphasizing the multi-layered nature of those interactions.

Minority Group

A sociological term referring to a group of people who, due to their physical or cultural characteristics, are singled out from the others in the society in which they live for differential and unequal treatment.