Which of the Following Statements Is True of a Portfolio

question 47

Multiple Choice

Which of the following statements is true of a portfolio strategy? 

• A) ​It guides the strategic decisions of corporations that compete in a variety of businesses. 
• B) ​It guides an investor who invests in a variety of stocks. 
• C) ​It reduces risk by buying a variety of items so that the failure of one business does not doom the entire portfolio. 
• D) ​It focuses on increasing profits, revenues, or the number of places in which a company does business.

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Definitions:

Job Satisfaction

The level of contentment employees feel about their work, which can affect their performance and overall well-being.

Certain Standard

A specific level of quality, achievement, or compliance that is established as a benchmark or guideline.

Higher-Level Needs

Advanced human desires in Maslow’s hierarchy, including esteem and self-actualization needs, which surface after basic physiological and safety needs are met.

Lower-Level Needs

Basic human requirements such as physiological needs and safety, which have to be fulfilled before higher-level needs, like self-esteem and self-actualization.