Portfolio Diversification Eliminates Which One of the Following

question 36

Multiple Choice

Portfolio diversification eliminates which one of the following?

• A)Total investment risk
• B)Portfolio risk premium
• C)Market risk
• D)Unsystematic risk
• E)Reward for bearing risk

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Definitions:

Equal

Signifying that two or more entities share the same value or quantity, implying no difference in measurement or status between them.

Set of Data

A collection of related sets of information that is composed of separate elements but can be manipulated as a unit by a computer.

Population Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of values in a total population.

Set of Data

A set of data refers to a collection of numbers or values that relate to a particular subject or experiment.