A Good Way to Minimize Risk and Receive an Optimum

question 46

Multiple Choice

A good way to minimize risk and receive an optimum return on your portfolio is:

• A)through diversification.
• B)to buy only risk-free securities.
• C)through blue-chip stock purchases only.
• D)through junk-bonds.

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Definitions:

Obvious Terms

Conditions or elements in an agreement or contract that are clear and unmistakable to all parties involved, often not needing explicit statement or detailed explanation.

Quasi Contract

A fictional contract imposed on parties by a court in the interests of fairness and justice; usually, quasi contracts are imposed to avoid the unjust enrichment of one party at the expense of another.

Imposed

Enforced or applied by authority or necessity, often referring to laws, taxes, or penalties that are set upon individuals or entities.

Fairness And Justice

Fairness And Justice involve principles of impartiality and equity where individuals receive fair treatment and decisions are made without favoritism or prejudice.