Which of the Following Statements Is Correct with Regards to Diversification

question 64

Multiple Choice

Which of the following statements is correct with regards to diversification?

• A)Diversifying reduces the return of the portfolio.
• B)Diversifying reduces the market risk of the portfolio.
• C)Diversifying reduces the dollar return of the portfolio.
• D)None of these statements are correct.

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Definitions:

ERP

Enterprise Resource Planning, or ERP software, is used by organizations to efficiently manage various day-to-day business activities, ranging from accounting and procurement to project management and manufacturing.

Information Silos

Refers to a situation in which information is isolated within a department or unit within an organization, leading to inefficiencies and lack of synergy between different parts of the organization.

FAIS

Functional Area Information System, systems designed to manage data and information specific to the operations of a particular department or function within an organization.

Three Square Market

A company known for implementing microchip technology for employees, facilitating transactions and access within their facilities.