The Major Benefit of Diversification Is The

question 81

Multiple Choice

The major benefit of diversification is the:

• A) increased expected return.
• B) removal of all negative risk assets from the portfolio.
• C) reduction in the portfolio's market risk.
• D) reduction in the portfolio's total risk.

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Definitions:

Identity Complexity

The multifaceted nature of individual identities, encompassing various personal and social elements such as race, ethnicity, gender, and cultural background.

Marriage Rates

The statistical measure of the number of marriages occurring among the population within a given period of time, usually per 1,000 inhabitants.

Categorical Imperative

A concept in moral philosophy developed by Immanuel Kant that acts as a universal rule, requiring individuals to act in a way they wish all others would follow.

Moral Obligations

Ethical duties or commitments that arise from principles of right and wrong behavior.