Which of the Following Strategies Seeks to Increase the Portfolio

question 18

Multiple Choice

Which of the following strategies seeks to increase the portfolio value by reinvesting current income in addition to capital gains?

• A) Capital appreciation
• B) Capital preservation
• C) Return preservation
• D) Current income
• E) Total return

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Definitions:

Disequilibrium

Disequilibrium refers to a state of imbalance or lack of equilibrium, often used in contexts ranging from physical stability to economic conditions.

Accommodation

In cognitive development, the process of altering one's existing schemas or ways of thinking in response to new information.

Equilibration

A concept in Piaget’s cognitive development theory referring to the process of achieving mental stability where the child's internal structures match or fit the external environment.

Assimilation

A cognitive process that involves incorporating new information into existing cognitive schemas, perceptions, and understanding.