A Good Way to Reduce Macro Risk in a Stock

question 9

Multiple Choice

A good way to reduce macro risk in a stock portfolio is to invest in stocks that:

• A) have only specific risks.
• B) have diversified away the macro risk.
• C) have low exposure to business cycles.
• D) pay guaranteed dividends.

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Definitions:

Agent-Based Ethics

An ethical framework focused on the moral consideration of actions based on the agent performing them rather than solely on the outcomes of the actions.

Ethical Decisions

Choices made based on moral principles and values, considering the impact on stakeholders and society.

Compassion

The emotional response to another's pain or suffering, involving an authentic desire to help.

Absolutism

A deontological theory (also called nonconsequentialism) that emphasizes duties or rules; what’s morally right applies to everyone.