The Primary Benefit of Diversification Is That It

question 67

Multiple Choice

The primary benefit of diversification is that it

• A)is convenient.
• B)is cheaper.
• C)reduces the exposure of your investments to adverse effects of any individual investment.
• D)increases stock volatility.

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Definitions:

Second-degree Felony

A crime considered serious but less severe than a first-degree felony, often punished by significant penalties including imprisonment.

Misdemeanor

A crime less serious than a felony, punishable by a fine or incarceration in jail for up to one year, not in a state or federal penitentiary.

Infraction

A minor violation of a rule or law, typically not punishable by imprisonment.

Petty Offense

In criminal law, the least serious kind of wrong, such as a traffic or building code violation.