To Diversify, a Person Who Already Holds Stocks That Move

question 206

Multiple Choice

To diversify, a person who already holds stocks that move in the opposite direction of the stock market as a whole should:

• A) always buy more of the same stocks.
• B) buy stocks that move in the same direction of the stock market as a whole.
• C) buy stocks that have about the same expected returns as the stocks she already holds.
• D) sell all her stocks immediately.

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Definitions:

Impoverished Environment

An environment lacking in resources, stimulation, and opportunities for development, which can affect the cognitive and physical growth of individuals.

Poverty

A socioeconomic condition characterized by a lack of financial resources or means to meet basic living needs.

IQ

represents a score derived from standardized assessments designed to measure human intelligence and cognitive abilities.

Poor Nutrition

A state of receiving inadequate nutrients from the diet, leading to health problems.