Use the Table for the Question(s)below

question 89

Multiple Choice

Use the table for the question(s) below.
Consider the following covariances between securities:
-Which of the following statements is FALSE?

• A)When stocks are perfectly positively correlated,the set of portfolios is identified graphically by a straight line between them.
• B)An investor seeking high returns and low volatility should only invest in an efficient portfolio.
• C)When the correlation between securities is less than 1,the volatility of the portfolio is reduced due to diversification.
• D)Efficient portfolios can be easily ranked,because investors will choose from among them those with the highest expected returns.

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Definitions:

Vicarious Reinforcement

Learning that occurs by observing the reinforcement or punishment of another's behavior and then modifying one's own behavior accordingly.

Bandura

Refers to Albert Bandura, a psychologist known for his work on social learning theory, which emphasizes the role of observational learning, imitation, and modeling in behavior.

Unconscious Cognitive Processes

Mental operations beyond conscious awareness that influence perceptions, judgments, and actions without one’s realization.

Rational

Pertaining to reasoning or logical thinking; often involves making decisions based on reason rather than emotions.