Which of the Following Will Reduce the Risk Accompanying Equity

question 353

Multiple Choice

Which of the following will reduce the risk accompanying equity (stock) investments?

• A) the purchase of shares of a mutual fund that holds the stocks of many diverse corporations
• B) the purchasing and holding of equities over a lengthy period of time
• C) the purchase of shares in firms doing business in a wider variety of industries and markets
• D) all of the above

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Definitions:

Exhaustion

A state of extreme physical or mental fatigue, usually resulting from prolonged stress or activity.

Blended Family

A family unit composed of partners and their children from current and previous relationships.

Mixed Generation

The coexistence of individuals from different age groups within a specific context, promoting diversity and interaction.

Mixed Generation Family

A family structure that includes members from multiple generations living together or in close contact, such as grandparents, parents, and children.