You Have the Following Data on Three Stocks As a Risk Minimizer, You Would Choose Stock ____ If

question 8

Multiple Choice

You have the following data on three stocks: $\begin{array}{lll}\text { Stock }&\text { Standard Deviation }&\text { Beta }\\\mathrm{A} & 0.15 & 0.79 \\\mathrm{~B} & 0.25 & 0.61 \\\mathrm{C} & 0.20 & 130\end{array}$
As a 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; c.
• C) c; a.
• D) c; b.
• E) a; a.

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Definitions:

Cognitive-Behavioral

A treatment method focusing on correcting problematic feelings, actions, and thoughts through an organized, objective-driven procedure.

Sociocultural

Relating to the combined social and cultural factors that influence an individual's behavior and attitudes.

Interpersonal

Relating to relationships or communication between people.

Psychoanalytic

Pertaining to a theory of mental illness and therapy developed by Sigmund Freud that emphasizes unconscious psychological processes and stresses the importance of childhood experiences.