An Investor Who Reduces Random Risk by Investing in a Variety

question 102

Multiple Choice

An investor who reduces random risk by investing in a variety of types of investments is using

• A)the buy-and-hold approach.
• B)dollar-cost averaging.
• C)rules and charts.
• D)portfolio diversification.

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Definitions:

Certain Date

A specific, identified day in the calendar on which an event is scheduled to take place or a deadline is set.

Waste Product

Any unwanted or unusable material produced during a manufacturing process, which is often discarded or recycled.

Factory Setting

An industrial environment equipped for manufacturing goods, including facilities such as production lines and machinery.

Manufacturing Process

The series of operations involved in the production of goods, typically involving material, machinery, and labor.