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:

Ethnically Homogeneous

Referring to a population or community consisting of members who share the same ethnic background.

Former Soviet Union

The collection of republics and territories that constituted the Union of Soviet Socialist Republics (USSR), which existed from 1922 until its dissolution in 1991.

1917 Revolution

A significant political upheaval in Russia that led to the downfall of the czarist regime and the rise of the Soviet Union.

Trust And Understanding

The foundation for building strong relationships, implying a belief in the reliability, truth, and ability of others combined with comprehension and empathy.