A Risk-Neutral Investor

question 91

Multiple Choice

A risk-neutral investor:

• A)Highly values diversification
• B)Is the only type of investor who benefits from diversification
• C)Gains nothing from diversification
• D)Does not believe that diversification can reduce risk

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Definitions:

Contract Law

A branch of legal studies focusing on the creation, interpretation, and enforcement of agreements between parties with mutual obligations.

Intellectual Property

Legal rights that result from intellectual activity in the industrial, scientific, literary, or artistic fields.

Unequivocal

Leaving no doubt; clear, unambiguous, and without any possibility of misunderstanding.

Acceptance

The act of agreeing to receive or undertake something offered.