The Process by Which Risks Are Shared Among Many Different

question 120

Multiple Choice

The process by which risks are shared among many different assets or people is called:

• A) the credit risk.
• B) the risk spread.
• C) diversification.
• D) the liquidity process.

---

Definitions:

Concept

A general idea or understanding that is abstract and not specific to any particular instance.

Guideline

A recommended practice or direction that provides advice on how to make decisions or perform activities.

Goal

A specific, measurable, achievable, relevant, and time-bound objective that guides actions and decisions.

Results Oriented

A focus on achieving specific outcomes or goals, prioritizing end results over the processes used to achieve them.