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:

Vocabulary

The set of words known and used by a person in speech and writing.

Private Speech

Verbal communication directed at the self, typical in early childhood, and used for self-guidance and regulation.

Self-Regulation

An individual’s ability to prevent himself or herself from making a dominant, preferred or automatic response in order to perform a nondominant response, such as when a hungry person is served food at a restaurant but waits to eat until everyone at the table has been served.

Precursor

An element, condition, or event that precedes and indicates the approach of something.