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.
Correct Answer:
Verified
Q208: The BEST way to reduce financial risk
Q209: A loan is a:
A) liability for the
Q210: Which asset is the LEAST liquid?
A) a
Q211: An asset that can be quickly converted
Q212: Diversification in investment is achieved when:
A) the
Q214: You are choosing whether to purchase a
Q215: Which asset is the LEAST liquid?
A) cash
B)
Q216: An example that does NOT illustrate financial
Q217: Financial markets:
A) increase transaction costs.
B) reduce diversification.
C)
Q218: The four main types of financial assets
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