Which of the Following Statements Is Correct

question 7

Multiple Choice

Which of the following statements is correct?

• A) A single stock has a lot of diversifiable risk.
• B) A single stock has more market risk than a diversified portfolio of stocks.
• C) Bonds and stocks have a high correlation because they are both financial assets.
• D) None of these statements are correct.

---

Definitions:

Negative Reinforcer

A stimulus whose removal or avoidance after a behavior increases the likelihood of that behavior being repeated.

Anxiety

A feeling of worry, nervousness, or unease, typically about an imminent event or something with an uncertain outcome.

Negative Reinforcer

A stimulus which, when avoided or removed after a certain behavior, enhances the probability of that behavior occurring again.

Punishing Event

An event or stimulus that decreases the likelihood of the behavior that it follows, often used in behavior modification techniques.