The Purpose of Diversification Is to Spread Your Assets Among

question 16

True/False

The purpose of diversification is to spread your assets among several different types of investments to decrease risk.

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Definitions:

Acronym Method

A mnemonic device that involves using the initials of information to be remembered to form a word or phrase.

Link Method

A memory technique where you visualize items to be remembered in a way that they are linked together by a story or association.

Method of Loci

A mnemonic strategy of memory enhancement which uses visualizations with the use of spatial memory, familiar information about one's environment, to quickly and efficiently recall information.

Acrostic Method

A mnemonic device that uses the first letters of words in a list to form a sentence or phrase, aiding in memory retention.