Angela Reads Financial Advice Columns and Concludes the Following

question 112

Multiple Choice

Angela reads financial advice columns and concludes the following.Which,if any,of her conclusions are incorrect?

• A)Higher average returns come at the price of higher risk.
• B)People who are risk averse should never hold stock.
• C)Diversification cannot eliminate all of the risk in stock portfolio.
• D)None of her conclusions are incorrect.

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Definitions:

Observing Behavior

The act of monitoring or noting actions, reactions, or conduct of oneself or others, often for the purpose of research, learning, or assessment.

Confirmation Bias

The bias towards identifying, comprehending, choosing, and retaining information that corroborates one’s prior convictions or suppositions.

Social Input

The information or feedback received from others in a social context that can influence one's thoughts, feelings, and behaviors.

Prejudice

Preconceived opinion or bias against someone or something not based on reason or actual experience, often manifesting as discrimination or unjust behavior towards different social groups.