The Major Benefit of Diversification Is The

question 91

Multiple Choice

The major benefit of diversification is the:

• A) increased expected return.
• B) removal of all negative risk assets from the portfolio.
• C) reduction in the portfolio's systematic risk.
• D)reduction in the portfolio's total risk.

---

Definitions:

Body Temperature

The measure of the body's ability to generate and get rid of heat, critical for maintaining metabolic processes in homeothermic species.

Appetite

The natural desire to satisfy a bodily need, especially for food.

Fat Metabolism

The biochemical process involving the breakdown and synthesis of fats in the body for energy production and storage.

Central Nervous System

The part of the nervous system consisting of the brain and the spinal cord that processes information and directs activity.