Diversification Can Eliminate

question 29

Multiple Choice

Diversification can eliminate:

• A) all risk in a portfolio.
• B) risk only if the investor is risk averse.
• C) the systematic risk in a portfolio.
• D) the idiosyncratic risk in a portfolio.

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Definitions:

Restrictions

Limitations or conditions placed on actions, activities, or agreements to regulate or control their scope and enforceability.

Ratifies

To formally approve or confirm an agreement, treaty, or law, making it officially valid.

Minor

An individual under the legal age of adulthood, often considered as under 18 years in many jurisdictions.

All-Season Passes

Tickets or passes that grant holders access to a facility, service, or event across all seasons of a year, often seen in theme parks or ski resorts.