Which Statement Is Consistent with the Strategy of Diversification in Stock

question 24

Multiple Choice

Which statement is consistent with the strategy of diversification in stock investment?

• A) Buy all stocks in the stock market.
• B) Pick stocks that you believe are undervalued.
• C) Buy a mutual fund of a broad stock market index.
• D) Buy and sell a stock at the same time.

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Definitions:

Learning Theory

A framework that explains how individuals acquire knowledge, skills, attitudes, or behaviors through experience, conditioning, or practice.

Associated

Connected or linked with something else in relation to memory, ideas, or phenomena.

Cognitive Learning

A form of learning that involves the use of mental processes and understanding to acquire knowledge and skills.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, emphasizing the consequences of actions.