Among the Six Principles of Finance, All Are Included Except

question 73

Multiple Choice

Among the six principles of finance, all are included except:

• A)All decisions are ultimately financial decisions.
• B)Higher returns are expected for taking on more risk
• C)Diversification of investments can reduce risk
• D)Financial markets are efficient in pricing securities
• E)all of the above are included

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Definitions:

Hopelessness

A feeling or state of despair when an individual believes there are no solutions to their problems or situation.

Rational Emotive Therapy

A form of psychotherapy created by Albert Ellis, focusing on identifying and changing irrational beliefs that lead to emotional and behavioral issues.

Nondirective Therapy

Any type of psychotherapy in which the therapist allows the direction of the therapy sessions to be controlled by the client; an example is person-centered therapy.

Rational Emotive Therapy

A form of cognitive-behavioral therapy focusing on changing irrational beliefs and cognitive processes that lead to emotional and behavioral issues.