The Cost Associated with Diversification Is

question 95

Multiple Choice

The cost associated with diversification is:

• A) a reduction in beta.
• B) a reduction in the risk premium.
• C) a reduction in the reward-to-risk ratio.
• D) a reduction in the expected return.
• E) essentially zero.

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Definitions:

Parietal Lobe

A region of the brain associated with processing sensory information regarding the location of parts of the body as well as interpreting visual information.

Reflex Action

An involuntary and immediate response to a stimulus without conscious thought.

Central Switching

Management and direction of data traffic in a network by a device or software that determines the optimal path for data to be forwarded to its destination.

Complex Nervous Systems

Intricate networks of neurons and synapses within organisms that process sensory input, regulate bodily functions, and guide behavior.