Which One of the Following Conditions Can Be Effectively Eliminated

question 97

Multiple Choice

Which one of the following conditions can be effectively eliminated through portfolio diversification?

• A) a general price increase nationwide
• B) an interest rate reduction by the Federal Reserve
• C) increased government regulation of auto emissions
• D) change in the political party that controls Congress

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Definitions:

Breach Contract

A failure to perform any term of a contract, written or oral, without a legitimate legal excuse, which allows the other party to seek compensation.

Reasonable Care

A legal standard requiring individuals to act with the caution and attentiveness that a prudent person would under similar circumstances.

Delegating Authority

The process by which a person or body authorizes another person or body to perform certain tasks or make decisions on its behalf.

Interest

The charge for borrowing money, typically expressed as an annual percentage rate, or the profit earned on money invested.