When Considering Collaborative Approaches to Diversification Which Two from the Following

question 1

Multiple Choice

When considering collaborative approaches to diversification which two from the following are key considerations?

• A) Risk
• B) Reward
• C) Share price
• D) Market share

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Definitions:

Dow Jones Industrial Average

An index that represents the stock performance of 30 large, publicly-owned companies based in the United States.

Price-Weighted

A stock market index calculation method where stocks are weighted according to their price per share, rather than their total market capitalization.

Divisor

A numeric factor used in calculations to adjust stock indexes, reflecting changes in the composition of the index without affecting its overall value.

Money Market Instrument

Financial securities that provide liquidity and are considered low risk, such as treasury bills, certificates of deposit, and commercial paper, with maturities typically less than one year.