Diversification

question 66

Multiple Choice

Diversification

• A)increases the likely fluctuation in a portfolio's return.Thus,the likely standard deviation of the portfolio's return is higher.
• B)increases the likely fluctuation in a portfolio's return.Thus,the likely standard deviation of the portfolio's return is lower.
• C)reduces the likely fluctuation in a portfolio's return.Thus,the likely standard deviation of the portfolio's return is higher.
• D)reduces the likely fluctuation in a portfolio's return.Thus,the likely standard deviation of the portfolio's return is lower.

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Definitions:

Rounder Skull

A description of a cranium shape that is more globular or spherical, often assessed in studies of human evolution and variation.

Placental Mammal

Mammal in which maternal and embryonic bloodstreams exchange materials by means of a placenta.

Herbivores

Animals that primarily consume plant material such as leaves, stems, and roots, playing key roles in ecosystems by transferring energy from plants to other trophic levels.

Rodents

A diverse group of mammals characterized by their continuously growing incisors, including mice, rats, squirrels, and beavers.