By Combining Stocks into a Portfolio,we Reduce Risk Through

question 87

Multiple Choice

By combining stocks into a portfolio,we reduce risk through

• A) higher expected return.
• B) higher rate of return.
• C) higher average return.
• D) diversification.

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Definitions:

Psychologist's Expectations

The preconceived notions or hypotheses that psychologists might have about the outcome of their studies or the behavior of their subjects.

Rorschach Inkblot Test

A psychological test in which subjects' perceptions of inkblots are recorded and then analyzed using psychological interpretation, complex algorithms, or both, often used to examine a person's personality characteristics and emotional functioning.

Hermann Rorschach

A Swiss psychiatrist and psychoanalyst known for developing the Rorschach inkblot test, a projective test of personality.

Projective Test

A type of personality test designed to let a person respond to ambiguous stimuli, revealing hidden emotions and internal conflicts.