Which of the Following Is a TRUE Statement of Modern

question 3

Multiple Choice

Which of the following is a TRUE statement of modern portfolio theory?

• A)It states that securities should be managed within a portfolio, rather than individually, to lower risk-reduction gains.
• B)It stipulates that investors should diversify their investments so as to be unnecessarily exposed to a single negative event.
• C)It shows how to form portfolios with the highest possible expected rate of return for any given level of risk.
• D)It demonstrates that by combining securities into portfolios, we can increase risk.

---

Definitions:

Madams

Women who manage or operate a brothel, overseeing the work and welfare of sex workers within the establishment.

Functionalist

Functionalist perspective is a sociological approach that emphasizes the way in which the parts of a society are structured to maintain its stability and functionality.

Social-psychological

Relating to how individual thoughts, feelings, and behaviors are influenced by social contexts and interactions.

Prostitution

The profession or activity of participating in sexual acts in exchange for money.