To choose: The term that best completes the given sentence.
Answer to Problem 6AA
The best term for the given statement is “overall”.
Explanation of Solution
The diversification is a strategy of managing risk in which mixes of many types of investments are kept in the portfolio. It reduces the risk of the portfolio. This happens because different types of investments have different level of risk and returns due to which loss in one type of investment does not affect another.
So, having different types of investments and savings lowers the overall risk.
Thus, the best term for the given statement is “overall”.
Chapter 6 Solutions
Economics Today and Tomorrow, Student Edition
Additional Business Textbook Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
Auditing And Assurance Services
Operations Management
Financial Accounting, Student Value Edition (5th Edition)
Foundations Of Finance
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education