In an Article, "Preparing for the Next Black Swan" (Wall

question 64

Multiple Choice

In an article, "Preparing for the Next Black Swan" (Wall Street Journal, Aug 21, 2010) , the point is made that diversification may be insufficient in protecting one's portfolio during a "Black Swan" event. Why may this be true?

• A)virtually all asset classes may decline at the same time
• B)investors may be unable to buy different assets during a "Black Swan" event
• C)some assets may rise while others decline during a "Black Swan" event
• D)Black Swan events are surprises and thus one cannot prepare for such an event.

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Definitions:

Transposons

Genetic elements that can move to different positions within the genome of a single cell.

Plasmids

Small, circular DNA molecules found in bacteria and some other cells, independent of the chromosomes, often carrying genes beneficial for survival.

Genetic Information

The hereditary information encoded in DNA or, in the case of some viruses, RNA, which determines the biological development and function of an organism.

mRNA

Messenger RNA, a type of RNA that carries the genetic information from DNA in the nucleus to the cytoplasm, where it serves as a template for protein synthesis.