Which of the Following Is NOT a Portfolio Diversification Technique

question 26

Multiple Choice

Which of the following is NOT a portfolio diversification technique used by portfolio managers?

• A) diversify by type of security
• B) diversify by the size of capitalization of the securities held
• C) diversify by country
• D) All of the above are diversification techniques.

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Definitions:

Situational Characteristics

Features or aspects of an environment or context that influence individuals' behavior, emotions, or thought processes.

Personality

An individual’s characteristic pattern of thinking, feeling, and behaving, distinguishing one person from another.

Personality Inventory

A questionnaire or assessment tool used to evaluate a person’s character traits, behaviors, and attitudes.

Projective Test

A type of personality assessment instrument in which respondents project their own underlying motivations, beliefs, or feelings onto ambiguous stimuli.