Which of the Following Is Correct

question 7

Multiple Choice

Which of the following is correct?

• A)Investors can reduce the risk in their portfolio by investing in international stocks since they tend to have low correlation with our own stock market.
• B)Combining both stocks and bonds will likely reduce risk in a portfolio because the two assets have low correlation.
• C)Your optimal portfolio is an efficient portfolio with your desired risk level.
• D)All of these statements are correct.

---

Definitions:

Self-Determination Theory

A psychological theory of motivation that emphasizes the role of innate psychological needs in the development of personal growth and behavioral regulation.

Basic Psychological Needs

Essential needs for psychological health, encompassing independence, skill, and connection.

Achievement

Success or accomplishment reached through effort, skill, or courage.

Controlled Motivation

A type of motivation that is externally regulated, often through rewards and punishments, rather than stemming from inherent interest or enjoyment.