Since All Assets Typically Do NOT Move Together,how Can Investors

question 138

Multiple Choice

Since all assets typically do NOT move together,how can investors typically reduce risk?

• A) purchase only the best performing assets
• B) diversify one's portfolio across different asset classes
• C) avoid poor performing assets
• D) actively manage one's portfolio

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Definitions:

Units Of Output

The total quantity of goods or services produced by a company or industry in a specific period.

Junior Partner

A member of a partnership or firm who has less responsibility and usually a smaller share of the business than senior partners.

Damage Award

A financial compensation granted by a court to indemnify losses or damages suffered by a plaintiff.

Drudgery

Tedious, hard, and repetitive work that is often seen as unenjoyable.