Which One of the Following Provides the Greatest Reduction in Total

question 71

Multiple Choice

Which one of the following provides the greatest reduction in total risk?

• A) Asset allocation.
• B) Diversification.
• C) Beta reduction.
• D) Security selection.

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Definitions:

Business Necessity

A defense to an allegation of employment discrimination in which the employer demonstrates that an employment practice that discriminates against members of a protected class is related to job performance.

Employment Discrimination

Unfair or unequal treatment of workers based on certain attributes such as age, sex, race, or disability, rather than job performance or qualifications.

Genuine Requirements

The legitimate needs or conditions stipulated by a party in agreement or transaction.

Disabilities Act

Legislation that protects individuals with disabilities against discrimination and ensures their access to opportunities and accommodations.