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A Common Strategy to Reduce the Risk of a Large

Question 213

Multiple Choice

A common strategy to reduce the risk of a large financial loss is to:


A) buy and sell assets through a mutual fund since mutual funds cannot lose money.
B) diversify financial assets so that their risks of failure are unrelated.
C) buy financial assets from developing countries because the rates of return are very high and safe and their national currencies are much more stable than the U.S. dollar.
D) buy real instead of financial assets.

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