For Assessing Whether and How Much of an Asset to Hold

question 20

Multiple Choice

For assessing whether and how much of an asset to hold, the important consideration is the asset's amount of

• A)relative risk.
• B)rate of return risk.
• C)nondiversifiable risk.
• D)diversifiable risk.
• E)absolute risk.

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Definitions:

Electric Meter

A device that measures the amount of electrical energy consumed by a residence, business, or an electrically powered device.

Private Property

Land or belongings owned by individuals or corporations and not by the government or public entities.

Trespass to Land

The entry onto, above, or below the surface of land owned by another without the owner’s permission.

Lawful Possession

The legal right to have or control an item or property, sanctioned by law.