If Your Wallet,which Contained a Credit Card,was Stolen and You

question 26

Multiple Choice

If your wallet,which contained a credit card,was stolen and you called the credit card company immediately,your maximum liability would be?

• A) Nothing.
• B) $50.
• C) $100.
• D) Unlimited unless you had purchased a protection policy from the credit card issuer.

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Definitions:

Standard Deviation

A statistical measurement that depicts the variability or spread of a set of data points or investment returns around their mean.

Diversification

An investment strategy aimed at reducing risk by allocating investments among various financial instruments, industries, and other categories.

Portfolios

A collection of different types of investments (such as stocks, bonds, commodities, etc.) that an individual or institution holds.

Unsystematic Risk

The risk associated with a specific company or industry, which can be mitigated through diversification.