Diversifying a Portfolio Across Various Sectors and Industries Might Do

question 86

Multiple Choice

Diversifying a portfolio across various sectors and industries might do more than one of the following.However, this diversification must do which one of the following?

• A)Increase the expected risk premium
• B)Reduce the beta of the portfolio to one
• C)Increase the security's risk premium
• D)Reduce the portfolio's systematic risk level
• E)Reduce the portfolio's unique risks

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Definitions:

Revenues

The total amount of money received by a company for goods sold or services provided during a certain period of time.

Fraction

A mathematical formula that signifies dividing one value by another.

Decimal Places

Decimal places refer to the digits that appear after the decimal point in a numerical value, representing fractions of a whole.

LCD Television

A television display technology based on liquid crystal display, which uses liquid crystals to produce images.