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:

Acute Lower Respiratory Infection

An infection that affects the airways and lung tissues, causing symptoms such as coughing, difficulty breathing, and fever.

Unilateral Emphysema

A condition where one lung is affected by emphysema, a form of chronic lung disease causing breathlessness due to over-inflated alveoli.

Bronchiolectasis

A condition involving the permanent enlargement and damage of the bronchioles, the small airways in the lungs, often leading to infection and respiratory problems.

Environmental Tobacco Smoke

Smoke from burning tobacco products and smoke exhaled by smokers, also known as secondhand smoke.