Which of the Following Will Tend to Result in the Least

question 281

Multiple Choice

Which of the following will tend to result in the least variation in the expected real rate of return from the ownership of stocks?

• A) ownership of a single stock for a short period of time
• B) ownership of a single stock over a lengthy period of time
• C) ownership of stocks from a specific sector (for example, the automobile industry) over a lengthy period of time
• D) ownership of a diverse set of stocks (the Standard & Poor's 500, for example) over a lengthy period of time

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Definitions:

Visual Information

Data received by the eye and processed by the brain to construct a visual representation of the surrounding environment.

Occipital

Pertaining to the occipital bone or the occipital region of the brain, involved in visual processing.

Meninges

The three layers of protective tissue (dura mater, arachnoid mater, and pia mater) covering the brain and spinal cord.

Arachnoid

A delicate membrane that encloses the brain and spinal cord, situated between the dura mater and pia mater.