____ Risk CAN Be Diversified Away by Investing in a Diversified

question 180

Multiple Choice

____ risk CAN be diversified away by investing in a diversified portfolio.

• A)Systematic
• B)Business-specific
• C)Unsystematic
• D)Both b & c

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Definitions:

Cognitive Simplicity

A cognitive style or way of construing the environment characterized by a relative inability to perceive differences among people.

Conditional Positive Regard

Approval, love, or acceptance granted only when a person expresses desirable behaviors and attitudes.

Detached Personality

Behaviors and attitudes associated with the neurotic trend of moving away from people, such as an intense need for privacy.

Striving For Superiority

The urge toward perfection or completion that motivates each of us.