Why Should an Investor Consider Diversification and Asset Allocation

question 109

Multiple Choice

Why should an investor consider diversification and asset allocation?

• A) To offset capital gains
• B) To achieve desired risk-return balance
• C) To increase total returns
• D) To achieve higher dividend yields
• E) To improve price-appreciation values

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Definitions:

Legal Cause

A legally sufficient reason to file a lawsuit, based on recognized legal principles.

Duty To Render

The legal or ethical obligation to provide a certain level of care or service, especially in professional or emergency situations.

Peril To Herself

Refers to someone being in a situation or engaging in behavior that poses a significant risk of harm to their own well-being.

Proximate Cause

A principle in the law of negligence that determines whether the harm or injury suffered by the plaintiff was a foreseeable consequence of the defendant's action or inaction.