Which Type of Risk Can an Investor Effectively Manage by Investing

question 10

Multiple Choice

Which type of risk can an investor effectively manage by investing in broadly diversified mutual funds?

• A)Serial risk
• B)Systematic risk
• C)Unsystematic risk
• D)None of the above is correct.

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Definitions:

Goal-Directed Behavior

Behavior motivated towards achieving a specific outcome or goal.

Overregularization

The tendency for young children to incorrectly use a regular grammar rule where they should use an exception to the rule.

Cognitive Development

The process through which a person's ability to think, understand, and learn evolves over time.

Container

A general term for any object that can hold, store, or contain other objects or substances.