Which of the Following Statements Is TRUE

question 66

Multiple Choice

Which of the following statements is TRUE?

• A) On average, smaller stocks have lower volatility than Treasury bills.
• B) Portfolios of smaller stocks are typically less volatile than individual small stocks.
• C) On average, smaller stocks have lower returns than larger stocks.
• D) On average, Treasury bills have higher returns than stocks.

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Definitions:

Innate Patterns

Refers to behaviors or actions that are genetically hardwired and manifest without the need for learning or experience.

Biologically Determined

Traits, behaviors, or characteristics that are influenced by genetic makeup rather than environmental factors.

Instinct

Natural, unchanging behaviors exhibited by animals in reaction to specific triggers.

Drive-Reduction

A theory of motivation that posits the reduction of physiological needs drives behavior towards achieving homeostasis.