Consult the Figure Below

question 7

Multiple Choice

Consult the figure below. In what kind of terrain would you expect to find a placer deposit?

• A)a dry lake bed
• B)a mountain peak
• C)the ocean floor
• D)a streambed

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Definitions:

Portfolio Risk

Describes the uncertainty or variability of returns associated with a portfolio of investments, highlighting the combined risk of individual assets.

Systematic Risk

The risk inherent to the entire market or an entire market segment, which cannot be mitigated through diversification.

Asset Specific Risk

The risk of loss associated with a particular asset, different from market risk.

Portfolio Diversification

A risk management technique that mixes a wide variety of investments within a portfolio.