Kay Powers Wants to Diversify Her Portfolio by Investing in a Firm

question 38

Multiple Choice

Kay Powers wants to diversify her portfolio by investing in a firm that has the potential to earn above average profits compared to other firms in the economy.What type of stock is Kay thinking about adding to her portfolio?

• A)Defensive stock
• B)Cyclical stock
• C)Small cap stock
• D)Blue chip stock
• E)Growth stock

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Definitions:

Equity Theory

A theory in social psychology that explains how individuals perceive fairness in the distribution of resources within interpersonal relationships.

Input

Information, ideas, or feedback provided by one or more individuals that can influence or modify a process or decision.

Largest Account

Refers to the customer or client that generates the highest revenue for a company, often receiving special attention or terms due to their importance.

Expectancy Model

A psychological theory that explains the process of motivation by associating efforts with performance and desirable outcomes.