The process by which risks are shared among many different assets or people is called:
A) credit risk.
B) risk spread.
C) diversification.
D) the liquidity process.

Question

Quizplus · Accepted Answer

Diversification is the process of spreading risks among different assets or people, reducing the overall risk of a portfolio. Credit risk refers to the risk of default on loans, while risk spread is not a commonly used term in finance. The liquidity process refers to the ability to quickly and easily convert an asset into cash.

The Process by Which Risks Are Shared Among Many Different