A Strategy That Attempts to Reduce the Overall Risk of an Entire

question 316

Multiple Choice

A strategy that attempts to reduce the overall risk of an entire investment portfolio by investing in a variety of assets is called

• A) pooling.
• B) arbitrage.
• C) diversification.
• D) weighted average.

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Definitions:

Angel Investors

Affluent individuals who provide capital for a business start-up, usually in exchange for convertible debt or ownership equity.

Crowdfunding

Gathering small sums of money from many people to finance a project or endeavor, commonly done online.

Bootstrapping

A method where entrepreneurs start their company with minimal capital, relying on personal finances and revenue from the business rather than seeking external investment.

Formal Fundraising

involves organized efforts to gather financial contributions from individuals, organizations, or governments, typically for nonprofit organizations or specific causes.