Why Is It So Difficult to Identify a Group of Assets

question 29

Multiple Choice

Why is it so difficult to identify a group of assets or other techniques that can fully eliminate portfolio risk?

• A)They types of assets that can eliminate portfolio risk are only available to professional money managers
• B)The lack of a full hedge for the lifetime work-related income streams we call human assets
• C)The volatility of portfolio returns over time
• D)All of the above
• E)None of the above

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Definitions:

Sensory Memory

The shortest-term element of memory, which allows individuals to retain impressions of sensory information after the original stimulus has ceased.

Fraction of a Second

A brief, fleeting moment of time, often used to describe very fast or immediate reactions.

Several Seconds

A brief period of time, typically less than a minute, often used to describe the duration of brief events.

Minutes

Written records of the main points and decisions made during meetings or formal gatherings.