10 Questions
What is the primary focus of the strategies mentioned in the text?
Preserving capital
What type of risk can be reduced or eliminated through diversification?
Unsystematic risk
What is the purpose of adding non-correlating assets to a portfolio?
To reduce systematic risk
What happens to non-correlating assets during market downturns?
They move in inverse directions
What is the goal of the investment strategy mentioned in the text?
To enhance portfolio resilience
What is the main benefit of using non-correlating assets in a portfolio?
More balanced returns
What is the primary purpose of buying put options in a rising stock?
To lock in profits and protect against potential losses
What is the main difference between hard stops and other types of stop-loss orders?
Hard stops are set at a fixed price, while other stops are set at a percentage
What is a key advantage of investing in dividend-paying stocks?
Regular income through dividend payments
What is the key feature of principal-protected notes with equity participation rights?
They offer a guaranteed return of principal, along with equity participation
Learn how to minimize risk and preserve capital in your investments with these six essential strategies. Discover the importance of diversification and other tactics to safeguard your portfolio.
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