By Combining Stocks into a Portfolio,we Reduce Risk Through

question 87

Multiple Choice

By combining stocks into a portfolio,we reduce risk through

• A) higher expected return.
• B) higher rate of return.
• C) higher average return.
• D) diversification.

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Definitions:

Cash Balance

Cash balance refers to the amount of cash that a company or an individual has available at any given time.

Cash Payments

Cash payments refer to transactions where cash is used to settle the payment for goods, services, or obligations.

Cash Budget

An estimation of cash inflows and outflows for a business over a specific period, used for managing liquidity.

Cash Payments

Transactions that involve the transfer of cash from one party to another, often for goods or services.