Discuss risk reduction through diversification
What will be an ideal response?
Diversification reduces risk by not putting all of one's eggs in one basket, but instead spreading them across multiple baskets. By doing this, an unfavorable event, in this case dropping a basket, will not lead to all of the eggs being broken, but only one. Hence risk is being reduced since a large loss will be less likely to occur.
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Gary sends samples of sheet music to schools for demonstration or presentation. Which of the following types of marketing is being illustrated from this statement?
A) kiosk marketing B) viral marketing C) direct-mail marketing D) telemarketing E) direct-response television marketing
That which employees find motivational may be related to their cultural background
Indicate whether the statement is true or false.
State Bank offers to lend money to Rodeo Promotions, Inc., at 15 percent interest. Before Rodeo accepts, a statute is enacted prohibiting loans at interest rates greater than 12 percent. Rodeo and the bank have
A. have a contract for a loan at 15 percent interest. B. have a contract for a loan at 12 percent interest. C. have a contract for a loan at 0 percent interest. D. no contract for a loan.
The future value of a $500 annuity due received for three years is $________, assuming an investment rate of 10%
A) 1,655.00 B) 665.50 C) 1,820.50 D) 335.65