Deciding What Proportion of a Total Portfolio Will Be Placed

question 38

Multiple Choice

Deciding what proportion of a total portfolio will be placed into a chosen portfolio of common stocks and into a chosen portfolio of bonds is called

• A) group selection.
• B) asset allocation.
• C) security selection.
• D) indifference analysis.

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Definitions:

Descriptive Norm

Norms that convey information about what is commonly done in specific situations.

Immediate Setting

The direct physical environment surrounding an individual at any given time, which can influence behavior and perception.

Injunctive Norm

Social norms that dictate what is perceived as approved or disapproved behavior within a society or group.

Descriptive Norm

A norm that describes how people actually behave in a given situation, rather than how they should behave.