Diversification Decreases the Variability of Both Unique and Market Risk

question 35

True/False

Diversification decreases the variability of both unique and market risk.

---

Definitions:

Revenue

The income generated from normal business operations, such as the sale of goods or services.

Budget

A detailed plan for the future that is usually expressed in formal quantitative terms.

Activity Measure

An allocation base in an activity-based costing system; ideally, a measure of the amount of activity that drives the costs in an activity cost pool.

Patient-visits

A measure used in healthcare to quantify the number of visits or interactions patients have with healthcare providers.