Diversification

question 51

Multiple Choice

Diversification:

• A) reduces risk but also reduces expected returns.
• B) increases risk but also increases your expected returns.
• C) reduces risk but does not reduce your expected returns.
• D) reduces risk and increases your expected returns.

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Definitions:

Cyclopentanol

An organic compound characterized by a five-membered ring structure bonded to a hydroxyl group, used in various chemical syntheses.

Cyclopentane

A ring-shaped hydrocarbon with a molecular formula C5H10, characteristic of saturated cyclic compounds.

Pyridine

A basic nitrogen-containing heterocyclic compound, resembling benzene but with one CH group replaced by a nitrogen atom.

Thionyl Chloride

A reactive chemical compound used widely in organic synthesis to convert carboxylic acids into acyl chlorides.