Which of the Following Would Reduce the Risk of an Investment

question 562

Multiple Choice

Which of the following would reduce the risk of an investment in the stock market?

• A) investing in a portfolio of diverse firms
• B) holding the investment for a long period of time
• C) both a and b
• D) neither a nor b

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Definitions:

Standard CBT

Cognitive Behavioral Therapy that follows established protocols to address and modify dysfunctional emotions, behaviors, and thoughts.

Acceptance

The process or act of receiving or acknowledging something as valid, true, or suitable, often used in the context of psychological well-being and social interactions.

Cognitive Distancing

The practice of observing one's thoughts and beliefs as temporary, rather than accurate reflections of reality, allowing for a more objective and less emotional response.

Suppress

To consciously or unconsciously prevent the expression or development of emotions, thoughts, or behaviors.