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Which of the Following Statements Is True

Question 29

Multiple Choice

Which of the following statements is true?


A) FIs can reduce profitability by taking advantage of the law of small numbers in their investment decisions.
B) FIs can reduce profitability by taking advantage of the law of large numbers in their investment decisions.
C) FIs can reduce risk by taking advantage of the law of small numbers in their investment decisions.
D) FIs can reduce risk by taking advantage of the law of large numbers in their investment decisions.

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