Which of the Following Is True About Portfolio Diversification

question 26

Multiple Choice

Which of the following is true about portfolio diversification?

• A)It reduces performance stability.
• B)It increases dependence on a single product.
• C)It allows a business to take advantage of offsetting product life cycles.
• D)It restricts a business to a single market.
• E)It reduces opportunity for growth.

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Definitions:

Resistance

A measure of the opposition to the flow of electric current in a conductor, usually quantified in Ohms (Ω).

Reed Switch

An electromagnetic switch used to control the flow of electricity in a circuit, operated by an applied magnetic field.

Permanent Magnet

A material that maintains a continuous magnetic field without the need for external power.

Electromagnet

A type of magnet in which the magnetic field is produced by an electric current.