Which Statement Is TRUE

question 32

Multiple Choice

Which statement is TRUE?

• A) To reduce portfolio risk, you should buy the majority of stocks from the industry that you work in.
• B) The riskiest stocks are those that move up and down the most with the overall economy.
• C) NASDAQ is composed of fewer stocks than the S&P 500.
• D) The least risky assets are positively correlated with your portfolio.

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Definitions:

Quality

The degree to which a product, service, or process meets specified standards or fulfills customer needs and expectations.

Odd Pricing

A pricing strategy where goods are priced just below a round number, e.g., $1.99 instead of $2.00, to make the price seem more attractive to consumers.

Newspaper Advertising

The process of placing commercials in newspapers to promote products, services, or events to its readership.

Magazine

A publication with a variety of articles, photos, and advertisements, typically focused on a particular subject or interest area, and released periodically.