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:

Rationalization

The process of making activities or tasks more efficient and logical, often through the implementation of rules and procedures.

Max Weber

A German sociologist, philosopher, and political economist who is regarded as one of the founders of the modern study of sociology and public administration.

Sanctions

Measures of reward or punishment that regulate individual or group behavior within societies or organizations.

Subculture

A subgroup within a broader culture that typically holds different beliefs or interests from the main cultural body.