How Can Investors Reduce the Risk Associated with an Investment

question 46

Multiple Choice

How can investors reduce the risk associated with an investment portfolio without having to accept a lower expected return?

• A) Wait until the stock market rises.
• B) Increase the amount of money invested in the portfolio.
• C) Purchase a variety of securities; i.e., diversify.
• D) Purchase stocks that have exceptionally high standard deviations.

Grasp the importance of factual information in lobbying and advocacy.

Understand the legislative and regulatory frameworks affecting nonprofit organizations’ involvement in political activities.

Recognize the role of nonprofit organizations in social change.

Understand best practices in nonprofit advocacy and the role of nonprofit boards in program advocacy.

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Definitions:

Professional Malpractice

Failure by a professional person to provide services with the competent and skillful level of care that is required in their profession, leading to harm or loss.

Private Securities Litigation Reform Act

A 1995 U.S. law aimed at reducing frivolous or unwarranted securities lawsuits through various procedural and substantive reforms.

Illegal Act

An illegal act refers to an action or conduct that is prohibited by law and subject to punishment or sanctions by legal authorities.

Remedial Action

Measures taken to rectify or mitigate damage, including cleanup or repair, especially in environmental contexts.