Which of the Following Is the Process of Spreading Your

question 134

Multiple Choice

Which of the following is the process of spreading your money among several different types of investments to lessen risk.

• A)book entry
• B)professional management
• C)asset allocation
• D)bond laddering
• E)dollar appreciation

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Definitions:

Small Businesses

Enterprises characterized by a small number of employees, limited revenue, and size within their industry.

Internal Rate of Return (IRR)

A financial metric used to estimate the profitability of potential investments.

Cost of Capital

The rate of return a company must earn on its investment projects to maintain its market value and attract funds.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.