We Can Reduce Volatility by Investing in Less Than Perfectly

question 92

Multiple Choice

We can reduce volatility by investing in less than perfectly positively correlated assets through diversification because the expected return of a portfolio is the weighted average of the expected returns of its stocks, but the volatility of a portfolio ________.

• A) is higher than the weighted average volatility
• B) is independent of weights in the stocks
• C) is less than the weighted average volatility
• D) depends on the expected return

Describe the mechanisms and effects of drugs on the central nervous system and overall human behavior.

Explain the concepts and techniques of hypnosis, including its applications and limitations.

Understand the practice and psychological effects of meditation, including its impact on health and consciousness.

Distinguish between altered states of consciousness induced by drugs, hypnosis, and meditation.

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Definitions:

Body Damage

Physical harm that impairs the function or structure of a part of the body.

Machinery Operation

The process or action of working with mechanical devices to perform a specific task or function.

Psychologist

A professional trained in the science of behavior and mental processes, often providing services in therapy, research, or education.

Heredity

The passing of traits from parents to their offspring through genes.