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.

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Definitions:

Problem-focused Coping

A strategy to deal with stress by tackling the problem directly to reduce or eliminate the source of stress.

Emotion-focused Coping

A stress management strategy that involves changing one's emotional response to a problem rather than the problem itself.

Attribution Retraining

A psychological intervention aiming to change the way individuals explain events, focusing on enhancing positive attributions about themselves.

Pessimistic Causal Attributions

The tendency to explain negative events as being caused by stable, internal, and global factors.