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:

Quasi-Experiment

A study that aims to evaluate cause and effect relationships, without the use of random assignment.

Independent Variable

An experimental variable that is manipulated by the researcher to investigate its impact on the dependent variable.

Prosocial Behavior

Actions intended to benefit others, including helping, sharing, donating, co-operating, and volunteerism.

Prosocial Video Games

Video games designed with the intent to positively influence the social behavior and attitudes of the players.