The Basic Reason Why Investors Use Spreading Strategies When Speculating

question 69

Multiple Choice

The basic reason why investors use spreading strategies when speculating in commodities is to

• A) increase leverage.
• B) increase profits.
• C) reduce risk.
• D) decrease transaction costs.

Identify the process and effects of emotional contagion within groups or between individuals.

Understand the equity theory, including inputs, outcomes, and perceptions of fairness in organizational contexts.

Recognize the significance of job characteristics and rewards in determining job satisfaction and pay disparities.

Appreciate the role of communication in influencing perceptions of fairness and satisfaction in the workplace.

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Definitions:

Conjunctive Rule

A decision rule used in consumer behavior that entails choosing items that meet all of a predetermined set of criteria.

Weighted Additive Rule

This rule is a decision-making strategy where alternatives are evaluated by multiplying each attribute's importance weight by its quantitative value, then summing these products to determine the best option.

Compensatory Rule

A decision rule used in consumer choice where the negative aspects of a product can be compensated by its positive aspects.

Price-Quality Relationship

The perceived association between the cost of a product or service and its quality, influencing consumer decision-making.