When an Investor Prefers a Portfolio That Is Diverse,has a Smaller

question 45

Multiple Choice

When an investor prefers a portfolio that is diverse,has a smaller return than an alternative,and has a much smaller variance then the investor must be:

• A) Risk seeking
• B) Risk loving
• C) Risk neutral
• D) Risk averse

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Definitions:

Nodding

Nodding is the act of moving the head up and down in agreement or to acknowledge something.

Effective Listener

An individual who actively listens and processes information communicated by others, demonstrating understanding and engagement.

Effective Listeners

Individuals who actively engage in listening to understand and process the speaker's message.

Avoid Distractions

Implementing strategies or measures to prevent one's attention from being diverted from a specific task or goal.