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    Macroeconomics Study Set 39
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    Exam 20: The Financial System: Opportunities and Dangers
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    Reducing Risk by Holding Many Imperfectly Correlated Assets Is Called
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Reducing Risk by Holding Many Imperfectly Correlated Assets Is Called

Question 77

Question 77

Multiple Choice

Reducing risk by holding many imperfectly correlated assets is called:


A) diversification.
B) moral hazard.
C) risk aversion.
D) leveraging.

Correct Answer:

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