A Common Strategy to Reduce the Risk of a Large

question 224

Multiple Choice

A common strategy to reduce the risk of a large financial loss is:

• A)to buy and sell assets through a mutual fund, since mutual funds cannot lose money.
• B)to diversify financial assets so that their risks of failure are unrelated.
• C)to buy financial assets from developing countries, because the rates of return are very high and safe and their national currencies are much more stable than the U.S. dollar.
• D)to buy real instead of financial assets.

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Definitions:

Healing Circles

A traditional form of holistic healing practice that involves gathering in a circle to promote health and well-being through sharing, support, and mutual respect.

Native Americans

Indigenous peoples of the United States, including both Native American tribes and Alaska Natives.

Free Association

A psychoanalytic technique in which a patient says whatever comes to mind without censorship as a way to uncover unconscious thoughts and feelings.

Psychoanalysis

A psychological theory and therapy method developed by Sigmund Freud, focused on unconscious motivations and conflicts as the drivers of human behavior.