The Key to Diversification Is That the Risks One Undertakes

question 77

Multiple Choice

The key to diversification is that the risks one undertakes should be:

• A)positively correlated.
• B)uncorrelated.
• C)negatively correlated.
• D)easy to reduce.

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Definitions:

Serious Side Effects

Severe consequences or reactions resulting from the use of a medication or treatment.

Utilitarian Ethics

An ethical theory that emphasizes the outcomes of actions, proposing that the most ethical decisions are those that maximize happiness or well-being for the greatest number of people.

Morally Correct

Acting in accordance with ethical principles and acknowledged standards of right and wrong behavior.

Greatest Good

A principle often associated with utilitarian ethics, emphasizing the action that results in the most benefit or happiness for the greatest number of people.