When Investing for a Long Horizon,investors Care About the Volatility

question 9

Multiple Choice

When investing for a long horizon,investors care about the volatility of ________ returns and not the volatility of ________ returns.

• A)average,cumulative
• B)cumulative,average
• C)mean,cumulative
• D)mean,average

---

Definitions:

Freud's Model

Sigmund Freud's structural model of the psyche, which divides it into the id, ego, and superego components, responsible for human behavior and emotion.

Id, Ego

Components of Sigmund Freud's psychoanalytic theory where the id is the set of uncoordinated instinctual desires, and the ego is the organized, realistic part that mediates between the desires of the id and reality.

Superego

The part of a person's mind that acts as a self-critical conscience, reflecting social standards learned from parents and teachers.

Self-Report Tests

Psychological tests and questionnaires where individuals provide data about themselves, which can be subject to biases but are valuable for measuring perceptions, attitudes, and certain aspects of mental health.