A Good Way to Minimize Risk and Receive an Optimum

question 39

Multiple Choice

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

• A)Through diversification
• B)Buy only risk-free securities
• C)Through blue-chip stock purchases only
• D)Through junk-bonds

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Definitions:

Cyclic Pathway

A series of biochemical reactions that occur in a sequence where the last step regenerates a reactant for the first step, forming a cycle, such as in the citric acid cycle.

Fossil Fuels

Natural fuels formed from the remains of ancient organisms, such as coal, oil, and natural gas, used as a source of energy.

Photosynthetic Organisms

Organisms that convert light energy into chemical energy through photosynthesis, using water and carbon dioxide to produce oxygen and glucose.

Chlorophyll A

Main photosynthetic pigment in plants.