Which of the Following Is Correct Concerning Diversification

question 2

Multiple Choice

Which of the following is correct concerning diversification?

• A)It only reduces firm-specific risk,but most of the reduction comes from increasing the number of stocks in a portfolio to well above 30.
• B)It only reduces firm-specific risk;much of the reduction comes from increasing the number of stocks in a portfolio from 1 to 30.
• C)It only reduces market risk,but most of the reduction comes from increasing the number of stocks in a portfolio to well above 30.
• D)None of the above is correct.

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Definitions:

Access to Medications

The availability or ability to obtain prescribed drugs for treatment or health maintenance.

Self-help Group

A support group composed of individuals with similar issues or conditions who gather to share experiences, offer encouragement, and help each other.

Suicide Precautions

Measures taken to prevent a person from acting on suicidal thoughts.

Lethality of Suicide Plan

An assessment of the potential danger or effectiveness of a suicide plan in causing death.