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.

---

Definitions:

Charles Lindbergh

An American aviator who became famous for making the first solo nonstop flight across the Atlantic Ocean in 1927.

Technical Prowess

The high degree of skill or expertise in a particular technical field or activity.

Flapper

A term used in the 1920s to describe a new generation of young Western women who wore short skirts, bobbed their hair, listened to jazz, and flaunted their disdain for what was then considered acceptable behavior.

Youth Culture

A way in which young people develop their own values and practices distinct from those of previous generations.