The Strategy of Investing in Several Assets So That Any

question 48

Multiple Choice

The strategy of investing in several assets so that any possible losses are independent events is:

• A)diversification.
• B)private information.
• C)moral hazard.
• D)adverse selection.

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Definitions:

Social Dilemma

A situation in which individual decisions lead to outcomes that might be good for the individual but detrimental to the group.

Indirect Pressure

Influences or suggestions made in a subtle way to sway someone's decision or behavior without direct command.

Conformity

The process of aligning one's attitudes, beliefs, and actions with the norms of a group or the expectations of society.

Compliance

The act of conforming, submitting, or adapting one's behavior to match with demands, requests, or regulations from others, often used in a legal or regulatory context.