To Reduce the Risk of Investing in an Individual Stock

question 310

Multiple Choice

To reduce the risk of investing in an individual stock, an ownership position in many different companies can be achieved by purchasing shares in a(n)

• A) indexed security.
• B) mutual fund.
• C) diversification bond.
• D) stock cooperative.

---

Definitions:

Instruments

Tools or devices used in various fields such as medicine, music, and science, for performing specific tasks or measurements.

Insomnia

A sleep disorder characterized by difficulty falling asleep, staying asleep, or waking up too early, resulting in impairment to daytime functioning.

Regular Exercise

Physical activity performed on a consistent basis with the intention of improving or maintaining physical fitness and overall health.

Comfortable Bed

A bed that provides adequate support and softness to ensure a good night's sleep, contributing to physical and mental well-being.