A Well-Diversified Portfolio Has About ________ of the Risk of the Typical

question 77

Multiple Choice

A well-diversified portfolio has about ________ of the risk of the typical individual stock.

• A) 8%
• B) 19%
• C) 27%
• D) 52%

---

Definitions:

Individualistic Cultures

Societies that emphasize personal achievements, independence, and self-reliance over collective goals.

Meta-Cognition

The awareness and understanding of one’s own thought processes, or thinking about thinking.

Magical Thinking

A belief in the interconnectedness of unrelated phenomena, where an individual attributes cause and effect relationships to actions and events without scientific justification.

Debiasing

Reducing errors and biases by getting people to use deliberate processing rather than automatic processing.