Which of the Following Will Tend to Result in the Least

question 281

Multiple Choice

Which of the following will tend to result in the least variation in the expected real rate of return from the ownership of stocks?

• A) ownership of a single stock for a short period of time
• B) ownership of a single stock over a lengthy period of time
• C) ownership of stocks from a specific sector (for example, the automobile industry) over a lengthy period of time
• D) ownership of a diverse set of stocks (the Standard & Poor's 500, for example) over a lengthy period of time

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Definitions:

Anticipation of Pain

The psychological and physiological response to expecting pain, which can modify perception and pain management strategies.

Lateral Prefrontal Cortex

A part of the frontal lobe of the brain involved in executive functions like decision-making, planning, and inhibiting inappropriate behaviors.

Anterior Cingulate Cortex

A part of the brain involved in a wide range of functions including emotion regulation, decision making, and impulse control.