Given a Choice Between Two Investments with the Same Expected

question 46

Multiple Choice

Given a choice between two investments with the same expected payoff:

• A)Most people will choose the one with the lower standard deviation
• B)Most people will opt for the one with the higher standard deviation
• C)Most people will be indifferent since the expected payoffs are the same
• D)Most people will calculate the variance to assess the relative risks of the two choices

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Definitions:

Adult Personality

The set of characteristics, traits, and behaviors that define an individual's personal identity in adulthood.

Unconscious

The part of the mind that contains thoughts, memories, and desires not within the current awareness but influencing emotions and behavior.

Structural Model

In the context of psychology, it is a framework for understanding the complex relationships between different concepts or structures, often involving statistical analysis to validate theoretical models.

Superego

In Freudian psychoanalytic theory, the part of the personality that represents internalized ideals and provides standards for judgment (the conscience) and for future aspirations.