Following Is a Brief Client-Interview Exchange

question 31

Multiple Choice

Following is a brief client-interview exchange.
Client:  I felt like my cabin was the most cohesive group in camp. Yet, I felt some personal problems at the time. I wanted to become a therapist and wondered if I wasn't simply being selfish and using my ability to help others as a way to avoid myself.
The following counselor responses are in reaction to the client. Indicate which are attending and which are nonattending.
"Cohesive group?"

• A) attending
• B) nonattending

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Definitions:

Single-Index Structure

A model used in finance that relates the returns of a stock to the returns of a market index through a single beta factor.

Covariances

A measure indicating the extent to which two variables change in tandem over time.

Well-Diversified Portfolio

A collection of investments that spans various assets to minimize risk while maximizing returns.

Single Index Model

A simplified model to estimate the return of a security based on the return of the market as a whole and the security's sensitivity to the market.