Diversification Means

question 23

Multiple Choice

Diversification means

• A)Buying a large amount of shares in one company
• B)Buying a large amount of shares in several companies within the same industry
• C)Buying all the shares of any one company
• D)Buying shares in different companies in different industries
• E)Buy a small amount of share in one company

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Definitions:

Confirmatory

Pertaining to tests or analyses conducted to confirm a prior hypothesis or finding.

Exploratory

Related to the initial investigation of phenomena, often without specific expectations or hypotheses, used to identify patterns, relationships, or insights.

SEM

SEM, or Standard Error of the Mean, quantifies the amount of variability in the mean of a sample distribution compared to the true population mean.

Factor Analysis

A statistical method used to describe variability among observed, correlated variables in terms of potentially lower number of unobserved variables, called factors.