Which One of These Would Generally Be Considered the Most

question 48

Multiple Choice

Which one of these would generally be considered the most rational action for a tax-paying investor?

• A)Trading frequently
• B)Selling their losing and holding their winning securities
• C)Throwing darts to select their portfolio holdings
• D)Holding a less than fully diversified portfolio of securities
• E)Ignoring taxes when making investment decisions

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Definitions:

Body Fat

The portion of the human body composed of fat tissue, which serves as energy storage, insulation, and protection of organs.

Triceps Muscle

A large muscle on the back of the upper arm that is responsible for the extension of the elbow joint.

Schemas

Mental frameworks that organize concepts and information.

Scripts

In cognitive psychology, sequences of expected behaviors, roles, and actions in particular social or personal contexts.