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:

Cortical Blindness

A condition where a person has lost their ability to see due to damage to the visual area in the brain's cortex, despite having healthy eyes.

Occipital Lobe

The region of the brain located at the back of the head, responsible for visual processing.

Parietal Lobe

The region of the brain that processes sensory information such as touch, temperature, and pain, and is involved in spatial orientation and manipulation.

Temperature

A physical quantity expressing the subjective perceptions of hot and cold, measured with a thermometer.