Reducing Risk by Holding Many Imperfectly Correlated Assets Is Called

question 77

Multiple Choice

Reducing risk by holding many imperfectly correlated assets is called:

• A) diversification.
• B) moral hazard.
• C) risk aversion.
• D) leveraging.

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Definitions:

Calcitonin

A hormone secreted by the thyroid gland that helps regulate calcium levels in the body by inhibiting bone breakdown and calcium release.

Parathyroid Hormone

An agent generated by the parathyroid glands, tasked with managing the amount of calcium in the blood and the metabolism of bones.

Calcitonin

A hormone produced by the thyroid gland that helps regulate blood calcium levels by lowering them when too high.

Parathyroid Hormone

A substance secreted by the parathyroid glands responsible for controlling blood calcium concentrations and bone metabolism.