In an Article, "Preparing for the Next Black Swan" (Wall

question 64

Multiple Choice

In an article, "Preparing for the Next Black Swan" (Wall Street Journal, Aug 21, 2010) , the point is made that diversification may be insufficient in protecting one's portfolio during a "Black Swan" event. Why may this be true?

• A)virtually all asset classes may decline at the same time
• B)investors may be unable to buy different assets during a "Black Swan" event
• C)some assets may rise while others decline during a "Black Swan" event
• D)Black Swan events are surprises and thus one cannot prepare for such an event.

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Definitions:

Insurance Company

A business that provides coverage, in the form of compensation resulting from loss, damages, injury, treatment, or hardship in exchange for premium payments.

Key Account Management

A strategic business approach focusing on building and maintaining strong relationships with a company's most important customers.

Team Selling

A sales strategy where a group of company representatives work together to sell a product or service, leveraging their combined expertise.

Mutually Beneficial

A situation or agreement in which all parties involved gain benefits, fostering a cooperative and advantageous relationship.