Why Is It So Difficult to Identify a Group of Assets

question 29

Multiple Choice

Why is it so difficult to identify a group of assets or other techniques that can fully eliminate portfolio risk?

• A)They types of assets that can eliminate portfolio risk are only available to professional money managers
• B)The lack of a full hedge for the lifetime work-related income streams we call human assets
• C)The volatility of portfolio returns over time
• D)All of the above
• E)None of the above

---

Definitions:

Perfectly Price Discriminate

A theoretical pricing strategy where a seller charges the maximum price each individual consumer is willing to pay, capturing all consumer surplus.

Profit Area

A segment of a business or a market where the income earned is more than the expenses incurred, resulting in a financial gain.

Price Per Unit

The cost of a single unit of a product or service.

Government-Granted Exclusive Right

A privilege or authority granted by the government to an individual or organization, typically giving them the sole right to produce, use, or sell a particular good or service.