Correct Answer: Having a suite of investments to reach a goal while minimizing risk
Explanation:
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More Options Trading MCQ Questions
Which of the following is a criticism of both fundamental and technical analyses?
Why do investors often expect the beginning of the year stock prices to rise?
Why would an investor be unlikely to hold growth, value, small cap, and index portfolios all at once?
Which of the following would be a way to limit one's potential losses?
Which of the following is an example of options used to mitigate risk?
What is an "option spread"?
What is meant by a "bull market"?
What factors does technical analysis primarily rely on?
How often should a trader revaluate the holdings in their portfolios?
Which of the following would not be an example of managing risk?