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:

Semantic Memory

The memory of knowledge concerning the use of language and the rules for the solution of problems or acquisition of concepts.

Hierarchically

In an organized manner where objects, values, or classes are ranked above one another, often used to describe structured relationships within systems.

Concept Organization

The arrangement and structuring of ideas and categories in the mind to facilitate understanding and retrieval of information.

Elaborative Rehearsal

A memory technique that involves thinking about the meaning of the term to be remembered, rather than merely repeating the word to yourself.