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:

Capabilities

The qualities, skills, and capacities that enable individuals or organizations to effectively perform or achieve tasks and objectives.

Geographic-Based Pay

A compensation strategy that adjusts an employee's pay based on the cost of living and market wage rates in the geographic location where they work.

Market Pricing

The process of determining the external value of jobs within an organization by comparing the organization's jobs to similar jobs in the external labor market.

Small Firms

Businesses or enterprises with a small number of employees, potentially offering more personalized services and having less market influence than larger companies.