A Diversified Portfolio of Securities Is Characterized By

question 45

Multiple Choice

A diversified portfolio of securities is characterized by:

• A)dissimilar risk-return characteristics of the financial instruments.
• B)concentration on a single industry which has the highest growth rate.
• C)erratic loss potential due to investment in latest financial vehicles.
• D)unstable earnings for the entire investment horizon.
• E)investing on a single security which has the lowest risk and the highest returns.

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Definitions:

Employment Opportunity

The availability of job positions that potential employees can apply for, often influenced by economic, societal, and organizational factors.

Age Discrimination

Unfair treatment or bias against individuals or groups based on their age, especially in employment practices.

Employment Act

Legislation that sets out the rights and obligations of employees and employers within the workplace.

Forced Retirement

The situation in which an employee is compelled to retire against their wishes, often due to company policies or economic pressures.