By Diversifying and Selecting Different Assets for a Portfolio, We

question 24

Multiple Choice

By diversifying and selecting different assets for a portfolio, we can

• A) increase the variability of the portfolio.
• B) increase the possibility of making direct foreign investments.
• C) reduce the variability of the portfolio.
• D) reduce the systematic risk arising from the investments we make.

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Definitions:

Significant Moral Difference

A substantial distinction, based on ethical or moral grounds, that affects how situations or actions are evaluated.

Prima Facie Duty

A duty that is apparent and obligatory until proven otherwise, often used in ethical discussions to describe actions that appear morally necessary at first glance.

Sentient Being

An entity that has the capacity to experience feelings and sensations, such as pain and pleasure.

Well-Being

A state of comfort, health, or happiness that individuals or groups experience.