Which of the Following Is the Concept and Procedure for Combining

question 2

Multiple Choice

Which of the following is the concept and procedure for combining securities into a portfolio to minimize risk?

• A) firm specific theory
• B) modern portfolio theory
• C) optimal portfolio theory
• D) total portfolio theory

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Definitions:

Situational Cues

Environmental signals that influence an individual's behavior in a particular context.

Activated Automatically

The process where certain responses or functions are initiated without conscious decision making.

Classical Conditioning

A conditioning method where a response initially triggered by one stimulus eventually gets triggered by another stimulus, due to their repeated association.

Instrumental Learning

A learning process in which an individual learns to associate behaviors with their consequences, leading to changes in behavior.