How Does Spreading Your Investment Money Across More Than One

question 101

Multiple Choice

How does spreading your investment money across more than one asset category reduce risk?

• A) It reduces uncertainty, only.
• B) It reduces volatility, only.
• C) It reduces uncertainty and volatility.
• D) It doesn't reduce risk.

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Definitions:

Vendor Transactions

Financial transactions made between a business and its suppliers/vendors, relating to the purchase of goods or services.

Enter Credit Card Charges

The act of recording expenses made through a credit card in an accounting system.

Item List

A compiled list of goods or services within a software application that can be bought, sold, or used in transactions.

Customer List

A record of clients that a business has, including their contact information and possibly purchase history.