Assume That an Investor Is Offered a Choice of a Risk-Free

question 95

Multiple Choice

Assume that an investor is offered a choice of a risk-free government bond or a high-risk corporate stock.Further assume that the expected return is the same for both.According to one of the axioms of finance,which investment would be chosen?

• A) the corporate stock
• B) the government bond
• C) neither, the investor would be indifferent
• D) none of the above

Recognize the characteristics of organizations with future orientation and assertion cultures.

Identify cultural dimensions, such as power distance, individualism vs collectivism, and their impact on organizational behavior.

Understand the steps for managing cultural differences in the workplace.

Recognize the effects of low-assertion vs high-assertion cultures on communication and teamwork.

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Definitions:

Context Effect

The influence of environmental factors on one’s perception, decision making, or cognition.

Proximity

The state of being close or near in space, time, or relationship, which can influence social connections and interactions.

Interposition

A visual cue in perception that occurs when one object partially blocks another, which can be used to perceive depth and spatial relationships.

Closure

A psychological phenomenon where an individual fills in gaps in sensory information to perceive complete images or forms.