Examlex
Why is a convergent pattern of surface winds associated with thunderstorm formation?
Risk and Return
The principle that potential return on investment rises with an increase in risk. Higher risk is associated with the greater probability of higher return and vice versa.
Moral Hazard
The tendency of a person who is imperfectly monitored to engage in dishonest or otherwise undesirable behavior.
Diversification
An investment strategy that minimizes risk by allocating assets among various financial instruments, industries, or other categories.
Market Risk
Risk that affects all companies in the stock market.
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