If a Person Diversifies Her Stock Portfolio, Then

question 45

Multiple Choice

If a person diversifies her stock portfolio, then:

• A) the expected return of her portfolio will increase.
• B) the risk of her portfolio will decrease.
• C) both the risk and expected return of her portfolio will increase.
• D) neither the risk nor the expected return of her portfolio will change.

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Definitions:

Market Research

The process of gathering, analyzing, and interpreting information about a market, including potential customers and competitors.

SWOT Analysis

A strategic planning tool that evaluates Strengths, Weaknesses, Opportunities, and Threats of a business or project.

Competitive Analysis

The systematic evaluation of the strengths and weaknesses of current and potential competitors.

Technological Environment

Refers to the set of technological conditions and developments that affect the operation and performance of businesses.