Javier Wants to Invest,but Wants to Reduce His Risk of Loss

question 41

Multiple Choice

Javier wants to invest,but wants to reduce his risk of loss by spreading the total investment across more stocks.Javier would be MOST interested in which of the following?

• A) spreading
• B) shorting
• C) margin buying
• D) diversification
• E) asset allocation

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Definitions:

Directive

A type of guidance or instruction that directs or orders how something should be done or achieved.

Therapeutic Environment

A setting designed to promote healing and wellness, often characterized by safety, support, and respect for the individual’s needs and dignity.

Somatization

refers to the process of manifesting psychological distress through physical symptoms without a medical cause.

Emotional Expression

The process of conveying one's feelings or emotions through words, facial expressions, body language, or other forms of communication.