Which of the Following Is NOT True Regarding Individual Investor

question 69

Multiple Choice

Which of the following is NOT true regarding individual investor behavior?

• A)Individual investors fail to diversify their portfolios adequately.
• B)A vast majority of individual investors hold fewer than 10 stocks in their portfolio.
• C)Employees tend to overinvest in their company's own stock.
• D)Individual investors' portfolios consistently outperform the market averages.

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Definitions:

Operations

Refers to the day-to-day activities necessary for a business to function, encompassing production, sales, and distribution.

Net Operating Cash

The amount of cash generated by the regular operating activities of a business within a specific period.

Plant Expansion

The process of increasing the physical size or production capacity of a manufacturing facility.

Debt Repayments

The process of paying back borrowed money, typically including both the principal amount lent and any accrued interest.