Diversifying a Portfolio Across Various Sectors and Industries Might Do

question 103

Multiple Choice

Diversifying a portfolio across various sectors and industries might do more than one of the following.However,this diversification must do which one of the following?

• A)Increase the expected risk premium
• B)Reduce the beta of the portfolio to zero
• C)Increase the security's risk premium
• D)Reduce the portfolio's systematic risk level
• E)Reduce the portfolio's unique risks

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Definitions:

Unique Voice

A distinct and recognizable way of expressing oneself in writing or speech that sets an individual apart from others.

Style

Refers to the distinct manner or way in which something is written or created, encompassing aspects like language choice, tone, and presentation to convey a specific voice or aesthetic.

Encourage Participation

Strategies or methods used to motivate individuals to take part in an activity or to contribute to a group effort.

Meeting Leader

The meeting leader is the individual responsible for guiding a meeting's process, ensuring that the agenda is followed, and facilitating discussion and decision-making.