Which of the Following Portfolios Might Be Expected to Exhibit

question 32

Multiple Choice

Which of the following portfolios might be expected to exhibit less unique risk?

• A)Five different stocks; portfolio Beta = .8
• B)Three different stocks; portfolio Beta = 1.2
• C)Ten different stocks; portfolio Beta = 1.0
• D)Twelve different stocks; portfolio Beta unknown

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Definitions:

Content Theories

Theories in psychology and management that explain the specific things that motivate individuals at work, focusing on the content of those motivators.

Human Needs

Fundamental physiological and psychological requirements that motivate individuals and influence their behavior.

Reinforcement Theories

Psychological theories suggesting that behavior can be shaped by controlling the consequences that follow those behaviors, often applied in organizational settings to motivate employees.

Reward Problem

Issues related to the allocation, perception, or effectiveness of rewards and incentives within an organization.