Principle 8 Tells Us That Diversification Reduces

question 103

Multiple Choice

Principle 8 tells us that diversification reduces

• A)risk.
• B)costs.
• C)profitability.
• D)earnings.
• E)none of the above.

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Definitions:

Traffic Lights

Traffic lights are signaling devices positioned at road intersections and pedestrian crossings to control the flow of traffic, using a universal color code to signal stop, go, and caution.

Socially Efficient

A situation in which resources are allocated in the most beneficial way from the perspective of society as a whole, considering both private and external costs and benefits.

Individual Resident

A person who inhabits a particular place, typically referring to living in a specific geographic area or dwelling.

Hire

The action of providing employment to someone; the act of engaging an individual for a job.