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:

CEO's Responsibility

The duties and obligations that come with the role of a Chief Executive Officer, including setting strategic direction, making major corporate decisions, and managing the overall operations and resources of a company.

Strategic Leader

A person who has the ability to influence others to voluntarily make decisions that enhance the prospects for the organization's long-term success while maintaining short-term financial stability.

Optimum Allocation

The process of distributing resources in the most efficient manner to achieve the highest possible returns or outcomes.

Subordinates

Employees or team members who are lower in rank or position and report to a superior.