Which of the Following Is Not Correct

question 41

Multiple Choice

Which of the following is not correct?

• A)There is a greater reduction in risk by increasing the number of stocks in a portfolio from 1 to 10,than by increasing it from 100 to 120 stocks.
• B)The historical rate of return on stocks has been about 5 percentage points higher than the historical rate of return on bonds.
• C)Stock in an industry that is very sensitive to economic conditions is likely to have a higher average return than stock in an industry that is not so sensitive to economic conditions.
• D)If you had information about a corporation that no one else had,you could earn a very high rate of return.This contradicts the efficient market hypothesis.

---

Definitions:

Restraint

The act of limiting, controlling, or restricting someone's actions or behavior, either physically or through other means.

Unconscious

A part of the mind that contains thoughts, memories, and desires not currently in the realm of conscious awareness but influence behaviors and emotions.

Freud

Sigmund Freud was an Austrian neurologist best known for founding psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Psychosexual Stages

Freud's theory of five developmental stages in childhood, each characterized by a different focus of libido (sexual drives).