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:

COGS

Cost of Goods Sold; the direct costs associated with the production of goods sold by a company, including materials and labor.

Revenue Forecast

An estimate of the amount of money a company will generate from sales in a future period.

Cost Ratio

The measure of the costs associated with a financial transaction or an investment, relative to its benefits or returns.

Planning Assumptions

Presumptions or hypotheses used as a base for strategic planning and decision making within an organization.