Diversification

question 3

Multiple Choice

Diversification:

• A) is the process by which risks are shared among many different assets or people.
• B) makes a market more liquid by having intermediaries ready to buy or sell any asset.
• C) is the interest rate at which one would lend if there were no risk of default.
• D) occurs when a borrower fails to pay back a loan according to the agreed-upon terms.

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Definitions:

First-degree Burn

A mild burn characterized by redness and pain that affects only the outer layer of the skin, known as the epidermis.

Swelling

The enlargement of a body part due to the accumulation of fluid or inflammation in tissues.

Basal Cell Carcinoma

A type of skin cancer that begins in the basal cells, characterized by slow growth and seldom spreading to other parts of the body.

Waxy Sheen

A smooth, glossy appearance on surfaces that resembles the texture or luster of wax.