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Ch. 8 Vocab Test

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Questions	Answers
The practice of dividing the money a person invests between several different types of investments in order to lower risk	Diversificaton
The process of setting moneyaside to increase wealth over timefor long-term financial qoals suchas retirement	Investing
Account or arrangementin which a person puts his/her moneyfor long-term growth; invested money should not be used for a suggested minimum of five years
Quality of an asset that permitsit to be converted quickly into cash without loss of value; availability of money
A list of your investments
Degree of uncertainty of return on an asset; in business, the likelihood of loss or reduced profit
Relationship of substantial reward compared to the amount of risk taken