The Purpose of Diversification Is to

question 55

Multiple Choice

The purpose of diversification is to

• A) reduce the volatility of a portfolio's return.
• B) raise the volatility of a portfolio's return.
• C) reduce the average return on a portfolio.
• D) raise the average return on a portfolio.

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Definitions:

Actual Performance

The real, measurable outcomes of an individual's or group's actions, as opposed to expected or perceived performance.

Hippie

A member of a youth movement in the 1960s that rejected conventional societal norms in favor of peace, love, and communal living.

Confederate

A participant in a study who is secretly working for the researchers, used to manipulate social interactions.

Female Victims

Women who have suffered harm or injury as a result of crime, accident, or other events or actions.