You Have the Following Data on Three Stocks

question 5

Multiple Choice

You have the following data on three stocks:
As a risk minimizer,you would choose Stock ____ if it is to be held in isolation and Stock ____ if it is to be held as part of a well-diversified portfolio.

• A) A; B.
• B) B; C.
• C) C; A.
• D) C; B.
• E) A; A.

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Definitions:

Provisions

Supplies of food, drink, or equipment, especially for a journey or special purpose.

Stereotype Interchangeability

The notion that stereotypes, while fixed in general, can be applied to any member of a targeted group without consideration for individual differences.

Stereotypes

Oversimplified and generalized beliefs or ideas about a group of people that often overlook individual differences and complexities.

Salience Principle

Categorizing people on the basis of what initially appears prominent about them.