You Have Developed the Following Data on Three Stocks

question 59

Multiple Choice

You have developed the following data on three stocks: If you are a risk minimizer,you should choose Stock ____ if it is to be held in isolation and Stock ____ if it is to be held as part of a well-diversified portfolio.

• A) A;A
• B) A;B
• C) B;A
• D) C;A
• E) C;B

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Definitions:

Organismic Needs

Fundamental human needs identified in various psychological theories that are innate and drive behavior, such as physiological, safety, love, and esteem needs.

Intrinsic Motivation

The drive to engage in an activity for its own sake, rather than for the sake of obtaining a reward or avoiding punishment.

Extrinsic Motivation

The drive to perform an activity due to external rewards or pressures, rather than for intrinsic satisfaction.

Extrinsic Motivation

Motivation that stems from outward incentives like financial gain, recognition, academic scores, or commendation.