Diversification Has the Advantage of

question 35

Multiple Choice

Diversification has the advantage of

• A) reducing expected return.
• B) reducing actual return.
• C) reducing risk.
• D) reducing the profits of insurance companies.

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Definitions:

Suppliers

Entities that provide goods or services to another entity, typically within a supply chain, to assist in the production of final products or services.

Expected Monetary Value

A statistical technique in decision-making that calculates the average outcome when the future includes scenarios that may or may not happen.

Disaster Risk

The potential loss or damage that could result from the interaction of natural or human-made hazards with vulnerable conditions.

Suppliers

Businesses or individuals that provide goods or services to another entity along a supply chain, playing a vital role in production and distribution processes.