Which of the Following Is NOT True Regarding Individual Investor

question 69

Multiple Choice

Which of the following is NOT true regarding individual investor behavior?

• A)Individual investors fail to diversify their portfolios adequately.
• B)A vast majority of individual investors hold fewer than 10 stocks in their portfolio.
• C)Employees tend to overinvest in their company's own stock.
• D)Individual investors' portfolios consistently outperform the market averages.

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Definitions:

External Environment

All outside factors and influences that impact the operation and performance of an entity, including social, technological, economic, environmental, and political factors.

Physical Stimuli

External factors or changes in the environment that can produce a physical response in an organism.

Psychological Laboratory

A controlled environment where experiments are conducted to study various aspects of human behavior and mental processes.

Wilhelm Wundt

A German physician, physiologist, philosopher, and professor, known as one of the founders of modern psychology.