Which of the Following Statements Is True

question 29

Multiple Choice

Which of the following statements is true?

• A)FIs can reduce profitability by taking advantage of the law of small numbers in their investment decisions.
• B)FIs can reduce profitability by taking advantage of the law of large numbers in their investment decisions.
• C)FIs can reduce risk by taking advantage of the law of small numbers in their investment decisions.
• D)FIs can reduce risk by taking advantage of the law of large numbers in their investment decisions.

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Definitions:

Bid

An offer of a certain price for something, especially at an auction, or in broader contexts, an attempt or effort to achieve something.

Tid

An abbreviation for "ter in die," meaning three times a day; it is often used in medical prescriptions.

Prn

An abbreviation for "pro re nata," meaning "as needed,” commonly used in prescriptions.

Sig

Short for "signatura," a term used in prescriptions indicating the directions for use given to the patient.