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.

---

Definitions:

Codes Of Conduct

Written guidelines that outline ethical standards, expectations, and practices for behavior within an organization or profession.

Ethical Climate

The collective moral attitudes, standards, and values that shape the behavior, practices, and decision-making within an organization.

Stakeholders' Trust

The confidence that shareholders, customers, employees, and other people who have an interest in the organization have in the company's ability to meet its obligations and act in their best interests.

Strategic Philanthropy

A form of corporate social responsibility where companies align charitable activities with their strategic business goals, enhancing both societal and business outcomes.