The Primary Purpose of Portfolio Diversification Is To

question 91

Multiple Choice

The primary purpose of portfolio diversification is to:

• A) increase returns and risks.
• B) eliminate all risks.
• C) eliminate asset-specific risk.
• D) eliminate systematic risk.
• E) lower both returns and risks.

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Definitions:

Performance Objectives

are specific goals related to the output or outcome of work, set to evaluate and improve the performance of individuals, teams, or organizations.

Great Goals

Represent ambitious and inspirational objectives that challenge individuals or organizations to strive for excellence and achieve significant outcomes.

Challenging

Situations or tasks that are demanding and test one's abilities or resources.

Contingency Planning

The process of preparing for potential future situations or crises by developing plans to manage and mitigate risks.