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:

Critical Path Method

A project management technique that identifies the longest sequence of dependent tasks and calculates the shortest possible project duration.

Program Evaluation

The systematic collection and analysis of information about the activities, characteristics, and outcomes of programs to make judgments about them, to improve effectiveness, and/or to inform decisions about future programming.

Review Technique

A method or strategy used to assess, critique, and enhance the quality of work, projects, or academic research.

Date Of Completion

The specified day on which a project, task, or assignment is formally finished or due to be delivered.