Which of the Following Is a Desirable Feature of a Scientific

question 41

Multiple Choice

Which of the following is a desirable feature of a scientific theory?

• A) The theory simply restates the facts it is supposed to explain.
• B) The theory is based on illusory correlations.
• C) The theory makes complex assumptions.
• D) The theory is falsifiable.

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Definitions:

Stocks

Shares of ownership in a company, which represent a claim on the company's earnings and assets.

Investment

Applying resources, typically financial, in order to gain income or profit.

Portfolio

An aggregation of financial instruments such as company shares, debt securities, tangible commodities, available cash, and cash-like resources, including mutual funds and ETFs.

Perfectly Positively Correlated

A situation where two variables move in the same direction at the same rate, represented by a correlation coefficient of +1.