Portfolio Diversification Is Performed to ________

question 75

Multiple Choice

Portfolio diversification is performed to ________.

• A) protect against significant declines in any one vehicle
• B) maximize the returns from any one vehicle
• C) reduce the load that intermediaries charge
• D) maximize the earning potential of a portfolio
• E) maximize the earning potential of an investment vehicle

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Definitions:

Borda Count

A ranked voting method where voters order candidates by preference, and points are assigned based on position in the preference list, with the goal of identifying a winner through accumulated points.

Candidates

Candidates are individuals who present themselves or are nominated for a position, role, or to take part in a competition.

Voters

Individuals who are eligible and participate in elections to choose representatives or decide on public issues.

Consumption

The use of goods and services by households, an activity that provides utility to consumers and drives demand in the economy.