Two Risky Assets Can Be Combined to Lower the Overall

question 91

Multiple Choice

Two risky assets can be combined to lower the overall risk of a portfolio. This principle is commonly referred to as

• A) blending
• B) asset allocation
• C) diversification
• D) portfolio segmentation

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Definitions:

US

A country located in North America, known officially as the United States of America, characterized by a federal republic governmental structure.

CR

Depending on the context, CR can refer to a variety of concepts; without further clarification, it could mean Conditioned Reflexes, Critical Reading, or something entirely different.

Extinction Procedure

A behavioral technique in which reinforcement of a previously reinforced behavior is discontinued to reduce or eliminate that behavior.

Rest Interval

A period of time taken to rest or pause from activity, often used in exercise or work schedules to prevent fatigue.