What Are the Benefits of a Well-Diversified Portfolio

question 298

Multiple Choice

What are the benefits of a well-diversified portfolio?

• A)It protects you from systematic risk.
• B)It protects you from firm specific risk.
• C)It protects you from company-unique risk.
• D)All of the above are correct.
• E)All but A are correct.

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Definitions:

Christianity

A major world religion based on the life and teachings of Jesus Christ, emphasizing love, compassion, and forgiveness.

English Navigation Acts

The English Navigation Acts were a series of laws enacted by the British Parliament in the 17th century, aiming to tighten control over colonial trade by restricting the use of foreign ships for trade between England and its colonies.

Colonial Trade

A historical term referring to the trade between colonial powers and their colonies, often involving the exchange of goods such as spices, textiles, and other commodities for profit.

Dutch Merchants

Businesspeople from the Netherlands who were involved in trade and commerce, particularly during the period of Dutch exploration and colonization.