Two Risky Assets Can Be Combined to Lower the Overall

question 20

Multiple Choice

Two risky assets can be combined to lower the overall risk of a portfolio.This principle is commonly referred to as

• A)blending
• B)asset allocation
• C)diversification
• D)portfolio segmentation
• E)none of the above

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Definitions:

Spirituality

Concern with the sacred, as distinguished from material matters. In contrast to religion, spirituality is often individual rather than collective and does not require a distinctive format or traditional organization.

Religion

An organized system of ideas about the spiritual sphere or the supernatural, along with associated ceremonial practices by which people try to interpret and/or influence aspects of the universe otherwise beyond their control.

Food Foraging

A mode of subsistence involving some combination of hunting, fishing, and gathering of wild plant foods.

Spirituality

The quality or state of being concerned with religion or religious matters; the personal pursuit for meaning and connection with the sacred.