According to Research, How Many Things Can People Hold in Their

question 23

Multiple Choice

According to research, how many things can people hold in their short-term memory at once?

• A) only one or two
• B) about four to seven
• C) up to twenty-five
• D) more than fifty

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Definitions:

Risk Aversion

The preference to avoid uncertainty and potential loss in investment decisions, favoring safer or less volatile investments.

Historical Standard Deviation

It measures the variability or dispersion of historical returns of an investment around its average return over a certain period, indicating the investment's risk level.

Expected Return

The predicted average return on an investment calculated by adding together all possible returns weighted by the likelihood of each occurring.

Asset Allocation Strategy

A method of investment where an individual divides their investment portfolio among various asset categories, such as stocks, bonds, and cash, to optimize risk and return.