A Diversified Portfolio of Securities Is Characterized By

question 99

Multiple Choice

A diversified portfolio of securities is characterized by:

• A) dissimilar risk-return characteristics of the financial instruments.
• B) concentration on a single industry that has the highest growth rate.
• C) erratic loss potential due to investment in the latest financial vehicles.
• D) unstable earnings for the entire investment horizon.
• E) investing in a single security that has the lowest risk and the highest returns.

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