Examlex

Solved

The Objective of Diversification Is to Reduce Risk

question 48

Essay

The objective of diversification is to reduce risk. How does a person diversify a stock portfolio? How is risk measured?


Definitions:

Data Dictionary

A unified storage space for data details, including its meaning, connections with other data, source, application, and structure.

Relational Database

A relational database is a digital database based on the relational model of data, where data is organized into tables (known as relations) that are related by common fields, allowing for efficient data retrieval and management.

Batch Processing

The accumulation of transaction data until a certain point is reached, at which time several transactions are processed at once.

Related Questions