Diversification Typically ______ Portfolio Risk

question 224

Multiple Choice

Diversification typically ______ portfolio risk.

• A) increases
• B) decreases
• C) maintains
• D) eliminates

---

Definitions:

Product Changes

Alterations made to a product’s design, specifications, or features to improve performance, appeal, or to meet regulatory standards.

Universal Process Approach

A conceptual framework that suggests principles and processes used by managers are universally applicable to all organizations, regardless of type, size, or location.

Henry Fayol

A French engineer and management theorist who is best known for developing one of the earliest theories of management, emphasizing organizational structure, management process, and the key functions of management.

Business Management Courses

Educational programs focused on teaching the principles, practices, and strategies of managing businesses.