Which of the Following Is Not a Determinant of the Risk

question 56

Multiple Choice

Which of the following is not a determinant of the risk of a portfolio?

• A)the amount of money invested in each asset in the portfolio
• B)the expected returns on the individual assets in the portfolio
• C)the number of assets in the portfolio
• D)the degree to which the returns of the assets in the portfolio move together

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Definitions:

Ultimatum Game

A game in economic experiments where one player proposes a division of a sum of money and the other player can accept or reject the proposal, testing concepts of fairness and decision-making.

Behavioral Economists

Economists who study the effects of psychological, social, cognitive, and emotional factors on the economic decisions of individuals and institutions.

Human Behavior

The range of actions and mannerisms exhibited by humans in conjunction with their environment, which can be influenced by culture, attitudes, emotions, and genetics.

Behavioral Economics

A field of economics that studies how psychological, emotional, cognitive, and social factors affect economic decisions.