The Principle of Diversification Tells Us That

question 101

Multiple Choice

The principle of diversification tells us that:

• A) concentrating an investment in two or three large stocks will eliminate all of your risk.
• B) concentrating an investment in three companies all within the same industry will greatly reduce your overall risk.
• C) spreading an investment across five diverse companies will not lower your overall risk at all.
• D) spreading an investment across many diverse assets will eliminate all of the risk.
• E) spreading an investment across many diverse assets will eliminate some of the risk.

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Definitions:

QSEN Competency

Quality and Safety Education for Nurses, competencies that focus on the preparation of nurses with the knowledge, skills, and attitudes necessary for continuously improving the quality and safety of the healthcare systems within which they work.

Accountability

State of being answerable for one's actions—a nurse answers to himself or herself, the patient, the profession, the employing institution such as a hospital, and society for the effectiveness of nursing care performed.

Fluid Status

A medical term referring to the balance of fluids within the body, including hydration levels and distribution of fluids in tissues.

Sanitation Techniques

Methods used to maintain cleanliness and prevent the spread of disease.