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:

Non-REM Sleep

A period of sleep characterized by slower brain waves and less eye movement compared to REM sleep; it consists of multiple stages and is critical for memory consolidation and recovery.

REM Sleep

A stage of sleep characterized by rapid eye movements, more vivid dreams, and increased brain activity, thought to play important roles in learning and memory processes.

Postural Muscles

Muscles that are used to maintain posture and balance, particularly those in the back, neck, and abdomen.

Rapid Eye

Often associated with the rapid eye movement (REM) phase of sleep, characterized by quick movements of the eyes under closed eyelids, typically associated with vivid dreaming.