A Common Strategy to Reduce the Risk of a Large

question 191

Multiple Choice

A common strategy to reduce the risk of a large financial loss is to:

• A) buy and sell assets through a mutual fund since mutual funds cannot lose money.
• B) diversify financial assets so that their risks of failure are unrelated.
• C) buy financial assets from developing countries because the rates of return are very high and safe and their national currencies are much more stable than the U.S. dollar.
• D) buy real instead of financial assets.

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Definitions:

Mercy Medical Center

A healthcare institution providing medical care and services; without specific details, this can refer to any one of several hospitals by the same name in different locations.

Rule Utilitarianism

An ethical theory that suggests the rightness or wrongness of an action should be judged by the rules that are followed, and that these rules should be chosen based on the utility or happiness they produce.

Act Deontology

A form of deontological ethics focused on the inherent morality of individual actions, regardless of their outcomes.

Rule Deontology

A moral theory that suggests actions are morally right or wrong depending on whether they follow certain rules or duties.