If You Build a Large Enough Portfolio, You Can Diversify

question 2

Multiple Choice

If you build a large enough portfolio, you can diversify away all risk, but you will be left with risk.

• A) systematic, undiversifiable
• B) diversifiable, diversifiable
• C) unsystematic, systematic
• D) diversifiable, unsystematic

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Definitions:

Philanthropic Management

The process of overseeing and guiding philanthropic activities and charitable donations, typically within an organization, to ensure their impact and alignment with strategic goals.

American Phenomenon

A unique cultural or social trend, behavior, or event that is distinctly characteristic of or limited to the United States.

Financial Pyramid

A representation of various classes of investments ranked in ascending order of risk and potential return, often used in financial planning and investment strategies.

Principal Gift

a significant financial donation made to a non-profit organization, often a transformational contribution that can have a substantial impact on the organization's capabilities and future.