Which One of the Following Provides the Greatest Reduction in Total

question 2

Multiple Choice

Which one of the following provides the greatest reduction in total risk?

• A)diversification
• B)asset allocation
• C)security selection
• D)beta reduction

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Definitions:

Creativity

The ability to generate novel and valuable ideas or solutions to problems.

Rationalization

A compromise mechanism characterized by trying to justify one’s behavior by constructing bogus reasons for it.

Receptivity

The willingness or readiness to accept or be open to ideas, suggestions, or changes.

Intuition

An understanding or insight gained without the need for conscious reasoning.