Multiple choice

Which of the following is/are incorrect?

A. Mutuality means funds from various individuals are combined. B. Diversification means spreading out funds to various destinations.

  1. A is correct.

  2. B is correct

  3. Both A and B are correct.

  4. None of the above is correct.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Mutuality means flow of resources from many to one. Diversification is a risk management technique that mixes a wide variety of investments within a portfolio.

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