Diversification of a Portfolio

question 118

Multiple Choice

Diversification of a portfolio

• A)can eliminate market risk,but it cannot eliminate firm-specific risk.
• B)can eliminate firm-specific risk,but it cannot eliminate market risk.
• C)increases the portfolio's standard deviation.
• D)is not necessary for a person who is risk averse.

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Definitions:

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Individuals subscribed to Amazon's membership program, offering benefits like free shipping, streaming, and exclusive deals.

Confidence Interval

A breadth of numerical estimates, derived from samples, considered likely to embrace the unidentified value of a population parameter.

Confidence Interval

An estimated range of values calculated from a given set of sample data, indicating the reliability of a statistical estimate.

Book Fair

A public event or gathering where books from various genres and authors are displayed and sold to promote reading and literacy.