Which of the Following Statements Is Correct with Regards to Diversification

question 75

Multiple Choice

Which of the following statements is correct with regards to diversification?

• A) Diversifying reduces the return of the portfolio.
• B) Diversifying reduces the market risk of the portfolio.
• C) Diversifying reduces the dollar return of the portfolio.
• D) None of these choices are correct.

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Definitions:

Global Cultures

Cultures that transcend local boundaries to create shared norms, values, and practices on a global scale.

Financescapes

A term from Arjun Appadurai's framework describing the global cultural flows, particularly the movement of money and financial services across borders.

Arjun Appadurai

A prominent contemporary social theorist known for his work on globalization, focusing on the cultural dynamics of globalization such as the flow of media, ideas, and finance.

Cultural Hybrids

Entities or practices resulting from the blending of elements from different cultures.