Which of the Following Leads to the Diversification of Risk

question 7

Multiple Choice

Which of the following leads to the diversification of risk?

• A)Investing in assets that give the highest possible returns
• B)Investing in safe assets that may give low returns
• C)Investing in multiple assets rather than a single asset
• D)Investing in assets that are highly risky but give high returns

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Definitions:

Employees' Contracts

Legal agreements between employers and employees detailing the terms of employment, including duties, duration, compensation, and grounds for termination.

Occupational Safety

Measures and procedures implemented to ensure the safety and health of employees in the workplace, aiming to prevent workplace accidents, injuries, and diseases.

Environmental Monitoring

The systematic collection of data regarding the natural environment and wildlife, often used to assess the health of the environment or to ensure compliance with environmental regulations.

Hazardous Materials

Substances that pose potential risks to health, safety, or the environment when mishandled or released.