Perhaps the Best Way to Reduce Macro Risk in a Stock

question 33

Multiple Choice

Perhaps the best way to reduce macro risk in a stock portfolio is to invest in stocks that:

• A) have only unique risks.
• B) have diversified away the macro risk.
• C) have low exposure to business cycles.
• D)pay guaranteed dividends.

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Definitions:

Intercellular Spaces

Gaps or areas between the cells of organisms, which in plants are often filled with air or fluid for the exchange of gases.

Cortex

The outer layer of various organs or body structures, such as the brain, kidneys, and hair.

Epidermis

The outer layer of cells covering an organism, particularly the surface layer of skin or leaves in plants, acting as a protective barrier against environmental stress.

Lateral Roots

Secondary roots that grow out from the main root of a plant, contributing to the stability and water/nutrient absorption capabilities of the plant.