Creating a Portfolio by Buying Several Different Types of Investments

question 123

Multiple Choice

Creating a portfolio by buying several different types of investments to spread the risk of investing is called

• A) modulation.
• B) diversification.
• C) re-allocation.
• D) formula investing.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.