Risk

question 102

Multiple Choice

Risk

• A)can be reduced by placing a large number of small bets rather than a small number of large bets.
• B)can be reduced by increasing the number of stocks in a portfolio.
• C)Both A and B are correct.
• D)Neither A nor B are correct.

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Definitions:

Maximum Profit

The highest possible financial gain that a business can achieve during a specific period, given its resources, market conditions, and operational constraints.

Creditors' Claims

Legal claims by lenders or creditors seeking repayment of debts owed to them by a debtor or borrower.

Involuntary Bankruptcy

A legal process initiated by creditors seeking to have a debtor declared bankrupt by a court, forcing the debtor to liquidate or reorganize their debts.

Bankruptcy Proceedings

The legal process through which individuals or entities unable to meet their financial obligations can seek relief from some or all of their debts.