Modern Portfolio Theory Suggests That

question 121

Multiple Choice

Modern portfolio theory suggests that:

• A)it is always wise to create a stock portfolio that captures a high average rate of return.
• B)the higher the expected return, the higher the portfolio's risk.
• C)it is always wise to create a stock portfolio consisting of similar stocks.
• D)a riskless portfolio is always the wisest alternative.

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Definitions:

Catatonic Rigidity

A symptom of catatonic schizophrenia where an individual exhibits an abnormality in muscle tone, leading to a rigid, immovable stance or posture for long periods.

Catatonic Rigidity

A symptom of catatonia characterized by an individual's muscles being stiff or rigid, leading to immobility or abnormal postures.

Catatonic Posturing

An abnormality of motor behavior marked by voluntary assumption and maintenance of inappropriate or bizarre postures.

Standing

The act of being in an upright position on the feet.