Diversification Benefits an Investor by

question 50

Multiple Choice

Diversification benefits an investor by

• A) increasing wealth.
• B) increasing expected return.
• C) reducing risk.
• D) increasing liquidity.

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Definitions:

Sample Mean

The average value of a sample, calculated by summing all the observations and dividing by the number of observations in the sample.

Range

The difference between the maximum and minimum values in a data set, indicating the spread of the data.

Standard Deviation

A metric that calculates the deviation or spread of data points in a dataset from the average value.

Range

The difference between the highest and lowest values in a dataset; it measures the extent of variability within the data.