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:

Repetitive Mathematical Procedures

Algorithms or operations that are performed repeatedly, often to solve problems or accomplish tasks in mathematics.

Heuristic

A strategy or method used in problem-solving or decision-making that employs a practical approach based on experience and immediate judgment rather than a strict or formal process.

Solve A Problem

The process of finding solutions to difficult or complex issues, often involving critical thinking, creativity, and analytical skills.

Priming

A technique in psychology used to influence a participant's response to a stimulus by exposing them to a previous stimulus.