The Professor Stands at the Podium in a Small Auditorium

question 93

Multiple Choice

The professor stands at the podium in a small auditorium filled with 200 students. From the students' perspective in their seats, the professor appears "flat" rather than three-dimensional, and she must use a microphone during her lecture. This professor is exhibiting which type of distance from her students?

• A)public
• B)impersonal
• C)social
• D)advanced

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Definitions:

Market Portfolio

The portfolio encompassing all assets in which each asset is held in proportion to its market value.

Beta

The measure of the systematic risk of a security. The tendency of a security’s returns to respond to swings in the broad market.

Market Risk

Risk factors common to the whole economy; also called systematic or nondiversifiable risk.

Diversified Portfolio

An investment strategy that spreads investments among various financial instruments, industries, and other categories to minimize risk.