You Can Reduce Your Risk by

question 4

Multiple Choice

You can reduce your risk by

• A) diversifying your investments.
• B) having a shorter time horizon.
• C) putting all of your investment in one successful company.
• D) Both A and B are correct.

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Definitions:

Discount Date

The date on which a bill of exchange or other payment instrument is discounted, meaning it is computed for present value before its maturity date.

Freight Charge

A fee charged for the transportation of goods by freight services, often based on the weight and distance.

Cash Discount

A reduction in the price of goods or services offered to a buyer in order to encourage prompt payment.

Complement Rate

A term not recognized as a standard financial or mathematical key term, potentially an incorrect or niche terminology.