---
title: Identify the principal advantage of diversification across many comp… — Crypto and the stock market, simply · tree and pragmatics
description: Identify the principal advantage of diversification across many companies. Exam question 4 of lesson 38 «Crypto and the stock market, simply» of the money course of Mova's primary school, with the dependency tree and pragmatics of the question and of each option; Mova's choice was wrong.
---

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# Exam question 4 · Crypto and the stock market, simply

<!-- .ven lang=en -->
Identify the principal advantage of diversification across many companies.

<!-- .vintro -->
**Mova's choice:** option 1 · **The right answer:** option 4 · wrong ✗ · **Who acts:** you · **What happens:** identify · **To what, where:** principal advantage, many companies

<!-- .vabout -->
This is exam question 4 of lesson 38 «Crypto and the stock market, simply» of the money course of Mova's primary school, asked in stiff, formal language. The page gives the question's syntax tree — a dependency tree in the style of Universal Dependencies — and its pragmatics clause by clause, then the 4 options as the student saw them, each with its tree and pragmatics. Every text is parsed by Mova itself. How the student answered it, with the score of every option and why: [the test at school](https://md.mova.elamur.ai/free/en/school-run/money/38-crypto-and-the-stock-market-simply/#e4).

## The question {#question}

```conllu
# sent_id = question:money:38-crypto-and-the-stock-market-simply:e4:1
# text = Identify the principal advantage of diversification across many companies.
1	Identify	identify	VERB	VB	Mood=Imp|VerbForm=Fin	0	root	_	_
2	the	the	DET	DT	Definite=Def|PronType=Art	4	det	_	_
3	principal	principal	ADJ	JJ	Degree=Pos	4	amod	_	_
4	advantage	advantage	NOUN	NN	Number=Sing	1	obj	_	_
5	of	of	ADP	IN	_	6	case	_	_
6	diversification	diversification	NOUN	NN	Number=Sing	4	nmod	_	_
7	across	across	ADP	IN	_	9	case	_	_
8	many	many	ADJ	JJ	Degree=Pos	9	amod	_	_
9	companies	company	NOUN	NNS	Number=Plur	1	obl	_	SpaceAfter=No
10	.	.	PUNCT	.	_	1	punct	_	_
```

<!-- .fr -->
| # | verb | tense, mood | who | what, whom | to whom | where | when | other | roles by |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1 | **identify** | imperative | you *not said here* | the principal advantage of diversification |  | many companies |  |  | vn characterize-29.2-1-1 «NP V NP S\_ING»: agent=Agent advantage=Theme |

<!-- .note -->
One row per clause the reader finds. «not said here»: a role filled from the clause above. «roles by»: a VerbNet class and frame when one fits the verb, else the reader's rules on the tree.

## The options {#options}

### Option 1 · ← Mova's choice {#o1}

<!-- .ven lang=en -->
The conversion of shares into cryptocurrency

```conllu
# sent_id = question:money:38-crypto-and-the-stock-market-simply:e4:o1:1
# text = The conversion of shares into cryptocurrency
1	The	the	DET	DT	Definite=Def|PronType=Art	2	det	_	_
2	conversion	conversion	NOUN	NN	Number=Sing	0	root	_	_
3	of	of	ADP	IN	_	4	case	_	_
4	shares	share	NOUN	NNS	Number=Plur	2	nmod	_	_
5	into	into	ADP	IN	_	6	case	_	_
6	cryptocurrency	cryptocurrency	NOUN	NN	Number=Sing	4	nmod	_	_
```

<!-- .fr -->
| # | verb | tense, mood | who | what, whom | to whom | where | when | other | roles by |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1 | **convert** |  |  | shares into cryptocurrency |  |  |  |  | nom conversion «event transitive»: of=patient |

### Option 2 {#o2}

<!-- .ven lang=en -->
The guarantee of profit in every year without exception

```conllu
# sent_id = question:money:38-crypto-and-the-stock-market-simply:e4:o2:1
# text = The guarantee of profit in every year without exception
1	The	the	DET	DT	Definite=Def|PronType=Art	2	det	_	_
2	guarantee	guarantee	NOUN	NN	Number=Sing	0	root	_	_
3	of	of	ADP	IN	_	4	case	_	_
4	profit	profit	NOUN	NN	Number=Sing	2	nmod	_	_
5	in	in	ADP	IN	_	7	case	_	_
6	every	every	DET	DT	PronType=Tot	7	det	_	_
7	year	year	NOUN	NN	Number=Sing	2	nmod	_	_
8	without	without	ADP	IN	_	9	case	_	_
9	exception	exception	NOUN	NN	Number=Sing	7	nmod	_	_
```

<!-- .fr -->
| # | verb | tense, mood | who | what, whom | to whom | where | when | other | roles by |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1 | **guarantee** |  |  | profit |  |  | in every year without exception |  | nom guarantee «communication transitive»: of=patient in=obl |

### Option 3 {#o3}

<!-- .ven lang=en -->
The exemption of the investor from all taxation

```conllu
# sent_id = question:money:38-crypto-and-the-stock-market-simply:e4:o3:1
# text = The exemption of the investor from all taxation
1	The	the	DET	DT	Definite=Def|PronType=Art	2	det	_	_
2	exemption	exemption	NOUN	NN	Number=Sing	0	root	_	_
3	of	of	ADP	IN	_	5	case	_	_
4	the	the	DET	DT	Definite=Def|PronType=Art	5	det	_	_
5	investor	investor	NOUN	NN	Number=Sing	2	nmod	_	_
6	from	from	ADP	IN	_	8	case	_	_
7	all	all	DET	DT	PronType=Tot	8	det	_	_
8	taxation	taxation	NOUN	NN	Number=Sing	5	nmod	_	_
```

<!-- .fr -->
| # | verb | tense, mood | who | what, whom | to whom | where | when | other | roles by |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1 | **exempt** |  |  | the investor from all taxation |  |  |  |  | nom exemption «state transitive»: of=patient |

### Option 4 · ✓ the right answer {#o4}

<!-- .ven lang=en -->
The limitation of loss arising from the failure of any single company

```conllu
# sent_id = question:money:38-crypto-and-the-stock-market-simply:e4:o4:1
# text = The limitation of loss arising from the failure of any single company
1	The	the	DET	DT	Definite=Def|PronType=Art	2	det	_	_
2	limitation	limitation	NOUN	NN	Number=Sing	0	root	_	_
3	of	of	ADP	IN	_	4	case	_	_
4	loss	loss	NOUN	NN	Number=Sing	2	nmod	_	_
5	arising	arise	VERB	VBG	VerbForm=Ger	2	acl	_	_
6	from	from	ADP	IN	_	8	case	_	_
7	the	the	DET	DT	Definite=Def|PronType=Art	8	det	_	_
8	failure	failure	NOUN	NN	Number=Sing	5	obl	_	_
9	of	of	ADP	IN	_	12	case	_	_
10	any	any	DET	DT	PronType=Ind	12	det	_	_
11	single	single	ADJ	JJ	Degree=Pos	12	amod	_	_
12	company	company	NOUN	NN	Number=Sing	8	nmod	_	_
```

<!-- .fr -->
| # | verb | tense, mood | who | what, whom | to whom | where | when | other | roles by |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1 | **arise** | gerund | the limitation of loss *not said here* |  |  | the failure of any single company |  |  | vn appear-48.1.1 «NP V»: agent=Theme |
| 2 | **limit** |  |  | loss |  |  |  |  | nom limitation «cognition transitive»: of=patient |
| 3 | **fail** |  | any single company |  |  |  |  |  | nom failure «act intransitive»: of=agent |

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**Text:** the tests of Mova's primary school, written for Mova (`world/data/school/`), as the course runner gave them to the student. **Trees:** Mova's own parse — the `en` model on the CPU, when the site is built — not checked by a teacher; they may be wrong. **Frames:** Mova's frames reader (`prag`), each text read on its own. Elamur Cosmic License.

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