The Major Benefit of Diversification Is To

question 73

Multiple Choice

The major benefit of diversification is to:

• A) increase the expected return.
• B) remove negative risk assets from the portfolio.
• C) reduce the portfolio's systematic risk.
• D) reduce the expected risk.

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Definitions:

Levels Of Intelligence

Refers to the different ways of categorizing human cognitive ability, often assessed through various types of IQ tests or other measures of cognitive function.

Mean

The average of a set of numbers, calculated by adding all the numbers together and dividing by the count of the numbers.

Sample Data

A subset of data selected from a larger population, used for statistical analysis.

Geometric Mean

The nth root of the product of n numbers, used to calculate average rates of return or growth over time.