Reducing Risk Through the Purchase of Assets Whose Returns Do

question 10

Multiple Choice

Reducing risk through the purchase of assets whose returns do not always move together is

• A)diversification.
• B)intermediation.
• C)intervention.
• D)discounting.

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Definitions:

Horizontal Differentiation

A structural feature of an organization that involves the division of labor and the specialization of tasks horizontally across departments.

Centralization

The accumulation of decision-making power at the higher echelons of an organization.

Standardization

The process of implementing and developing technical standards to ensure consistency, safety, and interoperability of products or services across different areas or sectors.

Formalization

The extent to which organizations standardize behavior through rules, procedures, protocols, and formal structures.