Diversification in one's investments reduces:

A. Idiosyncratic risk

B. Pooling risk

C. Systemic risk

D. Time preference risk


A. Idiosyncratic risk

Economics

You might also like to view...

A demand curve generally

a. is a straight horizontal line. b. is a straight vertical line. c. slopes downward to the right. d. slopes downward to the left.

Economics

Labor resources include:

a. skilled workers but not unskilled workers. b. unskilled workers but not skilled workers. c. a robot. d. education and training of workers. e. coffee breaks.

Economics

As the interest sensitivity of investment demand increases, the size of the crowding-out effect increases.

a. true b. false

Economics

If muffins and bagels are substitutes, a higher price for bagels would result in a(n)

a. increase in the demand for bagels. b. decrease in the demand for bagels. c. increase in the demand for muffins. d. decrease in the demand for muffins.

Economics