You Are Considering Investing in One of the These Three

question 42

Multiple Choice

You are considering investing in one of the these three stocks: $\begin{array}{ccc}\text { Stock } & \text { Standard Deviation } & \text { Beta } \\ \mathrm{A} & 20 \% & 0.59 \\\mathrm{~B} & 10 \% & 0.61 \\\mathrm{C} & 12 \% & 1.29\end{array}$
If you are a strict risk minimizer, you would choose Stock ____ if it is to be held in isolation and Stock ____ if it is to be held as part of a well-diversified portfolio.

• A) a; b.
• B) b; a.
• C) c; a.
• D) c; b.
• E) a; a.

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Definitions:

Communist Party

A political organization advocating the principles of communism, including the pursuit of a classless society through the overthrow of capitalism.

Taft-Hartley Act

1947 law passed over President Harry Truman’s veto; the law contained a number of provisions to weaken labor unions, including the banning of closed shops.

Workers' Rights

The rights and entitlements claimed for workers, which may include safe working conditions, fair wages, and the right to form or join trade unions.

Operation Dixie

A post-World War II campaign launched by the Congress of Industrial Organizations (CIO) aimed at unionizing Southern textile workers and promoting racial integration in the industrial sector.