Portfolio Diversification ____ Volatility While ____ Return

question 113

Multiple Choice

Portfolio diversification ____ volatility while ____ return.

• A)reduces; averaging out
• B)increases; averaging out
• C)reduces; increases
• D)increases; reduces

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Definitions:

Science

A systematic enterprise that builds and organizes knowledge in the form of testable explanations and predictions about the universe.

Behavioral Genetics

A field of study that examines the role of genetics and environmental influences on behaviors.

Influence

The capacity or power of persons or things to be a compelling force on or produce effects on the actions, behavior, opinions, etc., of others.

Heredity

The passing of traits from parents to offspring through genes.