Examlex

Solved

Many People Believe in the Validity of Activities Like Palmistry

question 75

Multiple Choice

Many people believe in the validity of activities like palmistry, tarot card reading, and astrology. The evidence to support the usefulness of these activities as anything other than entertainment is virtually non-existent. This reminds you to consider which principle of critical thinking the next time you are at a carnival with a mind reader or a fortune teller?


Definitions:

Complete Portfolio

An investment strategy that includes a diverse mix of assets to optimize risk and return.

Capital Allocation Line

A line in investment graph that shows the risk-reward profiles of various portfolios, combining a risk-free asset with a risky portfolio to maximize returns.

Risk-free Asset

An investment with a guaranteed return and no chance of default, such as government bonds.

Risk Aversion

The preference to avoid risk, where investors require higher returns to compensate for higher risk.

Related Questions