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.

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Definitions:

High Level Of Stress

A condition resulting from situations that are perceived as demanding or threatening, leading to physical and psychological strain.

Social Readjustment

The process of adapting to significant changes in one’s life circumstances, which can be stressful and require new coping strategies.

Condominium

A type of real estate divided into several units that are each separately owned, surrounded by common areas jointly owned.

Social Readjustment

The process of adapting to significant changes in one's life condition or social situation, often associated with stress.