The Goal of a Portfolio Owner Is To

question 182

Multiple Choice

The goal of a portfolio owner is to:

• A)maximize both risk and return, as the higher the risk, the higher is the return.
• B)investment only in risk-free assets that help avoid taxes.
• C)capture the high average returns of equities while minimizing the associated risk.
• D)avoid diversification and focus on stocks from one particular market.

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Definitions:

Punitive Supervisor

A manager or supervisor who emphasizes punishment as a means of maintaining control and ensuring compliance.

Contingency Approaches

Management theories suggesting that the best management strategy depends on, and is contingent upon, various internal and external situations or variables.

Power-based Approaches

Strategies or methods that rely on authority, force, or leverage to influence or control outcomes.

Leadership Style

The distinct approach and manner in which an individual guides or influences a group towards goal achievement, ranging from autocratic to democratic.