Diversification Refers to the

question 97

Multiple Choice

Diversification refers to the

• A)splitting of wealth into many assets.
• B)difference between the liquidity of an asset and its risk.
• C)difficulty of converting investments in common stocks into investments in bonds.
• D)difficulty of selling common stocks in a weak market.

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Definitions:

Legally Sufficient

Describes evidence or information that meets the established legal standards to support a claim or decision in court.

Consideration

The exchange of something of value in return for the promise or service of another party, a fundamental component of a valid contract.

Promise

A declaration or assurance by one party to another that a particular action or condition will occur or be met, potentially forming the basis of a contractual obligation.

Consideration

Something of value that is promised, given, or done that persuades a party to enter into a contract, making the contract legally enforceable.