Which Combination of Assets Is Likely to Be Most Effective

question 41

Multiple Choice

Which combination of assets is likely to be most effective in reducing portfolio risk?

• A)Two stocks in the same industry,such as GM and Ford
• B)Two stocks in the same country,such as GM and IBM
• C)Two precious metals,such as gold and silver
• D)One precious metal and one stock,such as gold and GM

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Definitions:

Adversaries

Parties or individuals who are in opposition or conflict with each other, often seen in negotiations or competitive situations.

Convert

The act of changing something into a different form or properties, often used in the context of data, religion, or energy conversion.

Pressure

Pressure in a negotiation or strategic context refers to the use of influence, persuasion, or demands to sway someone's decision or action towards a desired outcome.

Networks

Interconnected systems or groups of people that exchange information, resources, or support.