Which Statement Is NOT True

question 248

Multiple Choice

Which statement is NOT true?

• A) Portfolio managers should diversify investments.
• B) The promise of higher returns is accompanied by higher risk.
• C) A single investor can consistently beat the market over the long term.
• D) Active stock markets are an important part of the economy.

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Definitions:

Psychoanalytic Theory

A theory of psychology and human behavior that emphasizes unconscious motives and conflicts as the primary determinants of human behavior.

Unconscious Needs

Desires or requirements of which an individual might not be aware but which influence behaviors and emotions.

Inner Drives

Inherent motivations or impulses within an individual that propel them to act or pursue certain goals.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, influencing the likelihood of that behavior occurring again.