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What Is the Diversification Achieved by an Investor If He

question 52

Essay

What is the diversification achieved by an investor if he invests in Dell, IBM, and Microsoft?


Definitions:

Gift

Something voluntarily transferred by one person to another without compensation or consideration.

Consideration

The bargained-for exchange; what each party gets in exchange for his or her promise under a contract.

Causa Mortis Gift

A gift given by someone who believes they are about to die, intended to take effect only upon the death of the giver.

Inter Vivos

Describes actions or transactions that take place during the lifetime of an individual, often used in the context of gifts or trusts created while the donor is alive.

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