Diversification Is an Important Concept in Finance and Investments Because

question 8

Multiple Choice

Diversification is an important concept in finance and investments because it

• A) reduces the risk associated with market price fluctuations
• B) increases the investor's return
• C) decreases the need for investment planning
• D) decreases the variability of returns

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Definitions:

Autoimmune Disease

Disease resulting from a specific immune system reaction against self-antigens.

Articular Cartilage

Smooth, white tissue that covers the ends of bones where they come together to form joints, helping to reduce friction and absorb shock.

Fibrous Capsule

A tough connective tissue layer that encloses organs or joints, providing support and limiting their movement.

Rheumatoid Arthritis

An autoimmune disease that causes chronic inflammation of the joints, leading to pain, swelling, and eventually joint deformity.