Which of the Following Would Reduce the Risk of an Investment

question 562

Multiple Choice

Which of the following would reduce the risk of an investment in the stock market?

• A) investing in a portfolio of diverse firms
• B) holding the investment for a long period of time
• C) both a and b
• D) neither a nor b

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Definitions:

Information

Data that is processed, organized, or structured in a given context to make it meaningful or useful.

Particular Event

A specific occurrence or happening, often noteworthy or significant in some regard.

Factual Information

Knowledge or data based on real occurrences, observable phenomena, or verified facts.

Eyewitness

A person who directly observes an event and can provide a first-hand account or testimony of what happened, often used in the context of legal evidence.