The Most Diversified Portfolio in Terms of Risk Is $100,000

question 71

Multiple Choice

The most diversified portfolio in terms of risk is $100,000 worth of stock in:

• A)10 companies in the same industry.
• B)10 companies in two industries.
• C)10 companies in five industries.
• D)one company that sells 10 products.

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Definitions:

Securely Attached

Pertaining to an attachment style characterized by confidence in relationship security, stemming from consistent responsive caregiving.

Equity Theory

A theory suggesting that people feel more satisfied in relationships where perceived input and output are deemed to be equal among parties involved.

Sense of Fairness

The inherent human perception and expectation of equitable treatment and justice in interactions and distributions within society.

Social Exchange Model

A model which takes an economic perspective and assumes that people approach relationships with an underlying motivation of self-interest.