Principles of Investment for Future Uncertain Events
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Questions and Answers

Which of the following is a principle of investment for a provider of benefits on future uncertain events?

  • Considering the probability of outcomes (correct)
  • Investing in high-risk assets only
  • Ignoring market trends
  • Avoiding diversification

    • What is one key factor that a provider of benefits on future uncertain events should consider when making investment decisions?

  • The popularity of the investment
  • The current economic climate
  • The personal preferences of the provider
  • The historical performance of the investment (correct)

    • Which of the following is NOT a principle of investment for a provider of benefits on future uncertain events?

  • Considering the time horizon
  • Diversifying the investment portfolio
  • Assessing the expected return
  • Ignoring potential risks (correct)

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