A Risk-Neutral Saver

question 47

Multiple Choice

A risk-neutral saver

• A)can eliminate the market risk in his or her portfolio through diversification.
• B)gains nothing from diversification.
• C)benefits from diversification more than does the risk-averse saver.
• D)actually increases the risk in his or her portfolio by diversification.

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Definitions:

Employee Involvement

The practice of empowering employees by encouraging them to contribute ideas and participate in decision-making processes affecting their work.

Union-Management

The relationship, negotiations, and agreements between labor unions and employers regarding worker conditions, compensation, and rights.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make major decisions for a corporation.

Employee Involvement

The practice of engaging employees in decision making and giving them a role in shaping policies and processes that affect their work and the organization.