Perhaps the Best Way to Reduce Macro Risk in a Stock

question 33

Multiple Choice

Perhaps the best way to reduce macro risk in a stock portfolio is to invest in stocks that:

• A) have only unique risks.
• B) have diversified away the macro risk.
• C) have low exposure to business cycles.
• D)pay guaranteed dividends.

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Definitions:

Notice-And-Comment Rulemaking

A procedure that requires federal agencies to publish proposed rules in the Federal Register and allow the public to comment before they can be enacted.

Public Comment

A period during which members of the public can express their opinions or provide feedback on specific issues before a final decision is made by authorities or organizations.

Proposed Rule

A draft regulation or law put forward for discussion before it is formally adopted and implemented.

Administrative Law Judge

An official who presides over federal, state, or local administrative hearings and has the authority to make decisions on disputes involving administrative laws.