Which of the Following Is Defined as the Process of Spreading

question 50

Multiple Choice

Which of the following is defined as the process of spreading money across several different types of investments to reduce risk?

• A) speculation
• B) hedging
• C) asset allocation
• D) putting margin on shares

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Definitions:

Purchases Journal

A specialized accounting journal used to record the purchasing of goods and services on credit.

Promissory Note

A financial instrument in which the writer promises in writing to pay a determinate sum of money to the payee under specific terms.

Revenue Journal

A specialized accounting journal used to record all incoming revenues and sales transactions of a company.

Cash Receipts Journal

A dedicated accounting journal used to record all cash inflows or money received by a business.