Combining Two Negatively Correlated Assets to Reduce Risk Is Known

question 104

Multiple Choice

Combining two negatively correlated assets to reduce risk is known as

• A) risk aversion.
• B) diversification.
• C) valuation.
• D) liquidation.

---

Definitions:

Self-Help Books

Publications aimed at assisting individuals in improving aspects of their lives through personal reflection and application of specific strategies.

Circadian Rhythms

Biological processes that follow a roughly 24-hour cycle, influencing sleep, hormone release, and other bodily functions.

Melatonin

A hormone produced by the pineal gland in the brain, regulating sleep and wakefulness.

Indigestion

A common condition characterized by discomfort or pain in the upper abdomen, often occurring after eating or drinking and caused by difficulties in digesting food.