Diversification

question 66

Multiple Choice

Diversification

• A)increases the likely fluctuation in a portfolio's return.Thus,the likely standard deviation of the portfolio's return is higher.
• B)increases the likely fluctuation in a portfolio's return.Thus,the likely standard deviation of the portfolio's return is lower.
• C)reduces the likely fluctuation in a portfolio's return.Thus,the likely standard deviation of the portfolio's return is higher.
• D)reduces the likely fluctuation in a portfolio's return.Thus,the likely standard deviation of the portfolio's return is lower.

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Definitions:

Nonpreferred-Race Workers

Employees who are perceived or categorized as belonging to a racial or ethnic group that is less favored or discriminated against within a societal or organizational context.

Statistical Discrimination

A decision-making process that uses statistical or probability information on groups rather than individuals, leading to potential biases.

Long Run

The Long Run is a time period in economics during which all factors of production and costs are variable, allowing for full industry adjustment.

Discriminating Firms

Companies that differentiate in their treatment or pricing of customers or employees, based on specific attributes or behaviors.