What Is OPEC

question 32

Multiple Choice

What is OPEC?

• A) A free-trade area.
• B) A military alliance.
• C) A commodity cartel.
• D) An industrial consortium.

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Definitions:

Equally-weighted Portfolio

An investment portfolio in which all assets are allocated the same proportion of total investment.

Total Risk

The complete range of risk associated with an investment, including both systematic and unsystematic risk.

Risk Premium

The additional return an investor demands for taking on a higher risk compared to a risk-free asset, indicating the compensation for bearing extra risk.

Principle of Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio to minimize risks.