Diversification Can Effectively Reduce Risk

question 24

Multiple Choice

Diversification can effectively reduce risk. Once a portfolio is diversified the type of risk remaining is:

• A) individual security risk.
• B) riskless security risk.
• C) risk related to the market portfolio.
• D) total standard deviations.

---

Definitions:

Postmenopausal Women

Women who have gone through menopause and no longer have menstrual periods.

Physical Activities

Any bodily movement produced by skeletal muscles that requires energy expenditure, promoting physical fitness and health.

Skeletal Changes

Alterations that occur in the skeletal system due to factors such as aging, disease, nutrition, or injury.

Kohlberg

Refers to Lawrence Kohlberg, an American psychologist best known for his theory of stages of moral development.