A Common Strategy to Reduce the Risk of a Large

question 368

Multiple Choice

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

• A) buy and sell assets through a mutual fund since mutual funds cannot lose money.
• B) diversify financial assets so that their risks of failure are unrelated.
• C) 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 Canadian dollar.
• D) buy real instead of financial assets.

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Definitions:

Tendon

A fibrous connective tissue that attaches muscle to bone, enabling movement of the bone or structure.

Thoracic Muscles

Muscles located in the thorax that aid in breathing and support the chest wall.

Expiration

The process of exhaling air out of the lungs, involved in breathing and respiratory cycles.

Internal Intercostals

Muscles located between the ribs that assist with respiratory movements, particularly forced exhalation.