Which of the Following Is NOT a Portfolio Diversification Technique

question 10

Multiple Choice

Which of the following is NOT a portfolio diversification technique used by portfolio managers?

• A)Diversify by type of security.
• B)Diversify by the size of capitalization of the securities held.
• C)Diversify by country.
• D)All of the above are diversification techniques.

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Definitions:

Service Department

A segment of a company that provides support functions to the company's primary activities, such as maintenance or IT services.

Joint Cost

A cost that is incurred in the production of multiple goods or services where the cost cannot be attributed to individual products easily.

Physical Quantities

Measures of inventory that are based on physical count or volume, such as units, liters, or kilograms.

Investment Center

A division or unit within an organization that is responsible for generating its own revenue and controlling its costs, allowing it to be evaluated as a standalone entity for performance assessment.