Diversification Reduces the Riskiness of a Financial Portfolio Provided

question 12

Multiple Choice

Diversification reduces the riskiness of a financial portfolio provided

• A)the portfolio does not contain too many different assets.
• B)the returns on the assets in the portfolio do not vary in the same way.
• C)interest rates are stable.
• D)at least some tax-free assets are included.

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Definitions:

HR Manager

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