Buying Several Different Investment Alternatives to Spread the Risk Helps

question 68

Multiple Choice

Buying several different investment alternatives to spread the risk helps an investor achieve

• A) lower rates of return.
• B) lower commission fees.
• C) isolation.
• D) diversification.

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Definitions:

Simplify

To make something less complex or complicated, making it easier to understand or solve.

Radical

Refers to the root of a number, with the most common being the square root, though it can refer to cube roots or higher.

Square Root

A number which produces a specified quantity when multiplied by itself.

Square Root

The figure that, upon being multiplied with itself, results in the starting number.