The practice of spreading one's wealth over a variety of different financial investments in order to reduce overall risk is called:
A. diversification.
B. risk reservation.
C. following the risk premium.
D. allocation.
Answer: A
You might also like to view...
The quantity of real GDP produced by one hour of labor is defined as
A) the advance in technology. B) economic growth. C) the growth rate of technology. D) real GDP per person. E) labor productivity.
The money supply consists of:
A) currency plus reserves. B) currency plus required reserves. C) currency plus excess reserves. D) currency plus demand deposits.
The reserve ratio represents the proportion of deposits that a bank wishes to hold with itself
a. True b. False Indicate whether the statement is true or false
As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases. B. initially decreases, then increases. C. decreases. D. initially increases, then decreases.