The Primary Benefit of Diversification Is ________

question 116

Multiple Choice

The primary benefit of diversification is ________.

• A)an increase in expected return
• B)an equal reduction in risk and return
• C)a reduction in risk
• D)Diversification has no real benefit; it is a shell game promoted by investment advisors who are the only real winners.

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Definitions:

Secondary Analysis

The process of using existing data collected for a different purpose to conduct a new study.

Deductive

A logical process in which a conclusion follows necessarily from the stated premises, moving from general principles to specific instances.

Inductive

A reasoning process that involves making generalizations based on specific observations or evidence.

Quantitative

pertains to data or research that can be measured, represented, or expressed in numerical terms and is often used for statistical analysis.