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:

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome, often reflecting a concern over future events.

Antianxiety Medication

Drugs prescribed to alleviate symptoms of anxiety and manage conditions associated with anxiety disorders.

Xanax

A medication known generically as alprazolam, used primarily for the treatment of anxiety disorders and panic attacks by decreasing abnormal excitement in the brain.

Biomedical Therapist

A health professional who uses physical interventions and medications to treat psychological disorders, often with a focus on biological factors.