Through ________,The Risk of Loss Is Reduced by Spreading the Total

question 128

Multiple Choice

Through ________,the risk of loss is reduced by spreading the total investment across more stocks.

• A) spreading
• B) shorting
• C) margin buying
• D) diversification

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Definitions:

Margin of Safety

The difference between actual or expected sales and sales at the break-even point.

Units

Units are individual portions or segments of a whole, such as items produced, sold, or analyzed in a specific context, serving as a basic measure of quantity.

Advertising Budget

The sum of funds designated for the promotion of a brand, product, or service within a certain time frame.

Net Operating Income

A company's profit after subtracting operating expenses, excluding interest and taxes.