Which of the Following Is Probably the Best Approach to Diversification

question 131

Multiple Choice

Which of the following is probably the best approach to diversification in portfolio management?

• A)related differentiation  
• B)related diversification  
• C)unrelated diversification  
• D)unrelated differentiation

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Definitions:

Systems/Contingency Manager

A professional responsible for adapting management strategies to address and anticipate various situations or changes within an organization, ensuring flexibility and effectiveness.

Management Model

A framework or blueprint that outlines how an organization's resources are mobilized and managed to achieve its goals.

Mutual Adjustment Method

A process of achieving coordination through informal communication and spontaneous interaction among members.

Horizontal Communication

The exchange of information between individuals at the same level in an organizational hierarchy.