Question

Walter is trying to decide whether he wants to purchase shares in General Motors, Ford, or Honda, all of which are auto manufacturers. Walter is making a(n) _____ decision.

Answer 1

The correct answer is letter "A": security selection.

Step-by-step explanation:

Security selection is the act by which investors analyze different company's assets so they can decide which one to purchase. There are different factors to consider at the moment of entering a trade being such as Earnings Per Share (EPS) of the stock, the Beta Coefficient -measures volatility, or how many dollars per share the company pays as dividends.

Thus, Walter is in the middle of a security selection by studying stocks of car-makers such as General Motors, Ford or Honda.