Since All Assets Typically Do Not Move Together, How Can

question 60

Multiple Choice

Since all assets typically do not move together, how can investors typically reduce risk?

• A)Purchase only the best performing assets.
• B)Diversify one's portfolio across different asset classes.
• C)Avoid poor performing assets.
• D)Actively manage one's portfolio.

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Definitions:

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all living organisms.

Mitosis

A type of cell division in eukaryotic cells that results in two daughter cells each having the same number and kind of chromosomes as the parent nucleus.

Centrioles

Cylinder-shaped structures found in most eukaryotic cells that play a significant role in cell division.

Spindle Fibers

Microtubule structures that form during cell division, crucial for separating chromosomes into daughter cells.