A Stock That Is Risky on a Stand-Alone Basis

question 191

Multiple Choice

A stock that is risky on a stand-alone basis:

• A)is just as risky in a portfolio.
• B)is one that just about never produces a return that's higher than expected.
• C)is likely to produce a return that is substantially different from its mean or expected return.
• D)will have no effect on a portfolio's risk if it is added carefully.

---

Definitions:

Dopamine

Dopamine is a neurotransmitter in the brain that plays a key role in managing rewards, motivation, pleasure, and motor function.

Phineas Gage

A historically significant individual in the study of neuroscience and psychology, known for surviving a severe brain injury that altered his personality and behavior.

Hippocampus

A region of the brain crucial for learning and memory, particularly for forming new memories.

Brain Plasticity

The ability of the brain to change and adapt in response to experience, including the reorganization of its structure, functions, or connections.