Which of the Following Are Investor Diversification Problems

question 25

Multiple Choice

Which of the following are investor diversification problems?

• A)Many employees hold mostly their employer's stocks as investments.
• B)Many households hold relatively few individual stocks-the median is three.
• C)Investors seem to prefer local firms thereby limiting diversification opportunities.
• D)All of these are investor diversification problems.

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Definitions:

Analytical Intelligence

One of the three types of intelligence in Robert J. Sternberg's triarchic theory of intelligence, focusing on the ability to analyze, evaluate, judge, or compare and contrast information.

Creative Intelligence

The aspect of intelligence involved in the ability to think in new and novel ways and to find creative solutions to problems.

Applied Intelligence

The use of cognitive abilities to solve real-world problems and adapt to new situations.

Triarchic Theory

A theory of intelligence that proposes three aspects of intelligence: analytical, creative, and practical abilities.