Perhaps the Best Way to Reduce Macro Risk in a Stock

question 33

Multiple Choice

Perhaps the best way to reduce macro risk in a stock portfolio is to invest in stocks that:

• A) have only unique risks.
• B) have diversified away the macro risk.
• C) have low exposure to business cycles.
• D)pay guaranteed dividends.

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Definitions:

McCrae and Costa

Psychologists Robert R. McCrae and Paul T. Costa, known for developing the Five Factor Model of personality traits.

Unified Purpose

A shared, collective goal or mission that aligns the efforts and motivations of a group or organization.

Life Narrative

A story compiled by an individual, recounting significant events and experiences of their life.

Shaping of the Self

The process by which individuals form their identity and self-concept through interactions and experiences.