Buying a Diversified Mutual Stock Fund Allows You to

question 121

Multiple Choice

Buying a diversified mutual stock fund allows you to

• A) completely avoid all types of risk.
• B) avoid only random, unsystematic risk.
• C) avoid only systematic risk.
• D) avoid risk only when all the stock prices are perfectly correlated.

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Definitions:

Detailed Notes

Comprehensive and carefully recorded observations or summaries that capture the essential aspects of a subject or event.

James Madison

An American statesman, diplomat, expansionist, philosopher, and Founding Father who served as the fourth president of the United States from 1809 to 1817, known as the "Father of the Constitution."