Table 8.1 -If You Were to Create a Portfolio Designed to Reduce

question 117

Multiple Choice

Table 8.1
-If you were to create a portfolio designed to reduce risk by investing equal proportions in each of two different assets, which portfolio would you recommend? (See Table 8.1)

• A) Assets A and B
• B) Assets A and C
• C) none of the available combinations
• D) cannot be determined

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Definitions:

Franchisers

Businesses that grant licenses to individuals or companies allowing them to operate under the franchiser's brand and sell its goods or services.

Franchising

Franchising is a method of business expansion where a company (franchisor) grants the right to an individual or group (franchisee) to do business using the franchisor's brand and operational model.