Creating a Portfolio by Buying Several Different Types of Investments

question 123

Multiple Choice

Creating a portfolio by buying several different types of investments to spread the risk of investing is called

• A) modulation.
• B) diversification.
• C) re-allocation.
• D) formula investing.

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Definitions:

Functional Fixedness

A block to problem solving that comes from thinking about objects in terms of only their typical functions.

Relative Comparison

Relative comparison involves assessing or measuring something in relation to another similar item, considering their similarities and differences.

Insight Behavior

The understanding or learning of things through psychological introspection or a sudden realization.

Chimpanzees

Chimpanzees are primates that belong to the great apes family, known for their high intelligence and complex social behaviors.