Diversification
Flashcard
•
Social Studies
•
6th Grade
•
Practice Problem
•
Hard
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10 questions
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1.
FLASHCARD QUESTION
Front
Risk
Back
the chance of losing all or part of the value of an investment
2.
FLASHCARD QUESTION
Front
True or False: Risk can be reduced through diversification.
Back
True
3.
FLASHCARD QUESTION
Front
Diversification
Back
strategy in which you spread your investment dollars among different market
4.
FLASHCARD QUESTION
Front
Diversification is good because:
Back
It spreads the risk of investment
5.
FLASHCARD QUESTION
Front
Your financial return with a diversified investment portfolio will:
Back
Rise and fall, but have less risk than a small number of stocks and investments.
6.
FLASHCARD QUESTION
Front
"Putting all your eggs in one basket"
Back
Concentrated Risk
7.
FLASHCARD QUESTION
Front
Reagan wants to start investing. Her best friend just created a new jewelry line and she wants to invest all of it in the company. IS this a good investment strategy?
Back
No- If her best friend's business doesn't do well, Reagan will lose everything. She should only invest SOME of her money in her best friend's business.
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