What Should You Expect to Happen If You Randomly Select

question 101

Multiple Choice

What should you expect to happen if you randomly select stocks and add them to your portfolio?

• A)This will reduce the portfolio's unsystematic, or diversifiable, risk.
• B)This will increase the portfolio's expected rate of return.
• C)This will reduce the portfolio's beta coefficient and thus its systematic risk.
• D)This will have no effect on the portfolio's risk.

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Definitions:

Motivation

The psychological process that initiates, guides, and maintains goal-oriented behaviors.

Mechanistic Perspective

A viewpoint in organizational theory that sees organizations as machine-like, with highly organized, rigid, and controlled structures.

Study of Motivation

The research and analysis of what compels individuals to take action, make decisions, and achieve personal and professional goals.

Motivating Employees

The process of encouraging employees to perform their best by fulfilling their needs and aspirations.