To Reduce the Risk of Investing in an Individual Stock

question 310

Multiple Choice

To reduce the risk of investing in an individual stock, an ownership position in many different companies can be achieved by purchasing shares in a(n)

• A) indexed security.
• B) mutual fund.
• C) diversification bond.
• D) stock cooperative.

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Definitions:

Chinese Markets

Refers to the economic markets within China, including both the vast consumer market and the country's role as a major producer and trader on the global stage.

American Businessmen

Entrepreneurs and professionals engaged in commercial, industrial, or professional activities in the United States.

Tea

A beverage made by steeping dried leaves of the tea plant (Camellia sinensis) in hot water, known for its cultural and historical significance across the world.

Opium

A narcotic obtained from the poppy plant, historically used for its analgesic and euphoric properties, and central to several historic conflicts such as the Opium Wars.