Which of the Following Is Correct

question 64

Multiple Choice

Which of the following is correct?

• A)Risk-averse people will not hold stock.
• B)Diversification cannot reduce firm-specific risk.
• C)The larger the percentage of stock in a portfolio,the greater the risk,but the greater the average return.
• D)Stock prices are determined by fundamental analysis rather than by supply and demand.

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Definitions:

Consultative

A leadership or decision-making style that involves seeking input or feedback from others before making a final decision.

Representativeness heuristic

A cognitive shortcut used when making judgments about the probability of an event under uncertainty, based on how similar it is to a typical case.

Team leader

A person appointed or recognized within a group who guides, inspires, and coordinates the efforts towards achieving team objectives.

Accessibility heuristic

A cognitive shortcut that relies on immediate examples that come to a person's mind when evaluating a specific topic, concept, method, or decision.