Read the Paragraph Below and Answer the Questions That Follow

question 30

Multiple Choice

Read the paragraph below and answer the questions that follow.
(1) Just as growing children develop physically in stages, they also progress through stages of moral development. (2) Devised by American psychologist Lawrence Kohlberg, the stages describe the moral reasoning that guides decision-making. (3) The earliest stage Kohlberg called "pre-conventional." (4) Here, children base their moral decisions on the outcome of a choice. (5) In other words, something is right or wrong depending on whether they will be punished or praised for doing it. (6) The next level is called the "conventional" stage because people at this level base their moral judgments on the conventions of society. (7) Something is right during this stage if most people agree that it is right. (8) Many people do not pass beyond the conventional level of moral reasoning. (9) Those who do have arrived at what Kohlberg termed the "post-conventional" level, a stage at which people base their moral decisions on personal beliefs. (10) People with such convictions will do what they consider is right even if it contradicts social rules or comes with negative consequences.
Select the number of the topic sentence in the paragraph above.

• A) Sentence 1
• B) Sentence 2
• C) Sentence 3

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Definitions:

Beta

An indicator of how much a stock's price is expected to fluctuate, compared to fluctuations in the overall stock market.

Required Rate of Return

The minimum annual percentage return an investor expects to earn from an investment to consider it worthwhile.

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual, exchange-traded, and closed funds.

Market Risk Premium

The additional yield investors anticipate from maintaining a portfolio with inherent market risk rather than opting for assets free of risk.