Investing in Multiple Investments of Differing Risk Profiles for the Purpose

question 31

Multiple Choice

Investing in multiple investments of differing risk profiles for the purpose of reducing overall investment risk is called _____.

• A) digression
• B) deviation
• C) specialization
• D) diversification

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Definitions:

Independence

The condition or quality of being self-governing and not under the control of external authority, often relating to nations achieving autonomy from colonial rule or oppressive governments.

1946

The year post-World War II characterized by significant political, economic, and social changes worldwide, including the beginning stages of the Cold War.

U.S. Territory

A region that is under the jurisdiction of the United States but is not a state, often having different legal and political systems.

Political Climate

The general mood, attitudes, and opinions on political matters within a specific geographical area or population at a given time.