In an Article,"Preparing for the Next Black Swan" (Wall Street

question 83

Multiple Choice

In an article,"Preparing for the Next Black Swan" (Wall Street Journal,Aug 21,2010) ,the point is made that diversification may be insufficient in protecting one's portfolio during a "Black Swan" event.Why may this be TRUE?

• A) Virtually all asset classes may decline at the same time.
• B) Investors may be unable to buy different assets during a "Black Swan" event.
• C) Some assets may rise while others decline during a "Black Swan" event.
• D) Black Swan events are surprises and thus one cannot prepare for such an event.

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