Javier Wants to Invest, but Wants to Reduce His Risk

question 32

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:

Solvents

Substances, typically liquids, used to dissolve other substances, often used in chemical and pharmaceutical processes.

Subtle Seizures

Seizures that might not have obvious signs and are therefore difficult to detect without close medical assessment.

Respiratory Distress

A condition characterized by difficulty breathing, indicating an underlying health issue, often seen as an emergency situation.

Mottled

Describes skin that appears blotchy or has varied colors, often indicating poor blood flow or temperature regulation.