Diversification of a Portfolio Leads To

question 24

Multiple Choice

Diversification of a portfolio leads to:

• A)a negative correlation between the investments.
• B)a lower mean of returns.
• C)a lower variance of returns.
• D)a higher standard deviation of returns.

---

Definitions:

Resource Influence

The impact that the availability, quality, and management of natural resources have on an economy's development and performance.

Substitute Resources

Resources or goods that can replace each other in use, providing alternatives for consumers or producers when prices rise or supply diminishes.

Productivity

The measure of efficiency in converting inputs into useful outputs.

Assembly Line Worker

An individual who participates in a manufacturing process wherein each worker repeats one specific task to contribute to the production of a final product.