Diversification Is Similar to the Saying

question 18

Multiple Choice

Diversification is similar to the saying:

• A) " a bird in the hand is worth two in the bush"
• B) "a fool and his money are soon parted"
• C) "the risk to the portfolio is increased by diversification "
• D) "don't put all your eggs in one basket"

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Definitions:

Import-Export Clause

A provision in the United States Constitution that prohibits states from imposing taxes or duties on imports and exports, with certain exceptions.

Tax

A mandatory contribution to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions.

Police Power

The capacity of a state to regulate behavior and enforce order within its territory for the betterment of the health, safety, morals, and general welfare of its inhabitants.

U.S. Constitution

The foundational document that outlines the framework of the federal government of the United States, including its institutions and the rights of citizens.