Figure 27-6

question 79

Multiple Choice

Figure 27-6.On the graph,x represents risk and y represents return.
-Refer to Figure 27-6.Point A represents a situation in which

• A)all of a person's savings are allocated to a class of safe assets.
• B)the person knows with certainty that his or her return will be 3 percent.
• C)the standard deviation of the person's portfolio is zero.
• D)All of the above are correct.

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Definitions:

Reaction Formation

A defense mechanism where unacceptable impulses are transformed into their opposite, often presented in exaggerated or compulsive behaviors.

Repression

A defense mechanism where distressing thoughts or feelings are unconsciously excluded from consciousness.

Denial

A psychological defense mechanism where an individual refuses to accept reality or facts, thus avoiding a potentially distressing truth.

Upper Lobe

Refers to the top section of the lungs, where each lung is divided into lobes; the right lung has three lobes, and the left lung has two.