Angela Reads Financial Advice Columns and Concludes the Following

question 112

Multiple Choice

Angela reads financial advice columns and concludes the following.Which,if any,of her conclusions are incorrect?

• A)Higher average returns come at the price of higher risk.
• B)People who are risk averse should never hold stock.
• C)Diversification cannot eliminate all of the risk in stock portfolio.
• D)None of her conclusions are incorrect.

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Definitions:

Social Learning Theory

A theory that suggests people learn from one another, via observation, imitation, and modeling.

Behaviors

Actions, reactions, or mannerisms displayed by individuals or groups in response to stimuli or in various situations.

Forethought

The act of thinking or planning about the future beforehand.

Anticipate

To expect or predict something before it happens.