Which One of the Following Statements Is True

question 56

Multiple Choice

Which one of the following statements is true?

• A)Risk and return are inversely related.
• B)Investors are compensated only for diversifiable risk.
• C)The beta of a portfolio may be lower than the lowest beta of any individual security held within the portfolio.
• D)How a security affects the risk of a portfolio is less important than the actual risk of the security itself.
• E)Investing has two dimensions: risk and return.

Comprehend the requirements for a person to possess apparent authority.

Distinguish between actual express, implied, and apparent authority.

Identify the roles and powers of general and special agents.

Recognize the capacity requirements for principals and agents.

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Definitions:

Construct Organization

In personal construct theory, this refers to the way in which individual personal constructs are arranged or ordered within a person's mind, affecting perception and behavior.

Personal Construct Theory

A psychological theory developed by George Kelly in 1955, proposing that individuals use personal constructs (mental models) to understand and interpret their experiences.

Sociality Corollary

A principle suggesting that the establishment and understanding of personal identity are significantly influenced by social relationships and interactions.

Individuality Corollary

A concept suggesting that individuals perceive events and entities in a unique manner based on their personal construct system.