According to Drive-Reduction Theory, the Drive to Accumulate Wealth Is

question 29

Multiple Choice

According to drive-reduction theory, the drive to accumulate wealth is described as a(n)

• A)primary drive.
• B)acquired drive.
• C)biological need.
• D)fear.

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Definitions:

Systematic Risk

The risk inherent to the entire market or market segment, also known as non-diversifiable risk or market risk.

Market Risk Premium

The higher return an investor foresees from investing in a market portfolio with associated risks as opposed to choosing completely safe assets.

Risky Asset

An asset that carries a higher degree of risk of loss, but also offers a higher potential return.

Risk-free Asset

An investment with zero risk of financial loss, theoretically providing guaranteed returns, such as government bonds.