The Concept That Emphasizes That People Should Not Put All

question 51

Multiple Choice

The concept that emphasizes that people should not put all their eggs in one basket is

• A)the time dimension of investing.
• B)the curse of competitive investment markets.
• C)diversification reduces risk.
• D)the farmers analogy.
• E)liquidity is first.

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Definitions:

Product Extension Merger

A strategic action where companies merge to add new product lines or services, enhancing their market reach or diversity.

Conglomerate Merger

A conglomerate merger is the combination of two or more companies operating in entirely different industries into a single corporate structure.

Antitrust Laws

Legislation designed to promote fair competition for the benefit of consumers by regulating anti-competitive practices.

Justice Dept.

A federal executive department of the U.S. government responsible for the enforcement of the law and administration of justice.