Diversification Reduces the Risk of a Portfolio Because ________ and Some

question 21

Multiple Choice

Diversification reduces the risk of a portfolio because ________ and some of the risks are averaged out of the portfolio.

• A)stocks do not move identically
• B)stocks have common risks
• C)stocks are unpredictable
• D)stocks are always effected by the market

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Definitions:

SRY Gene

The SRY Gene is a sex-determining gene on the Y chromosome in males that triggers the development of male physical characteristics.

Determines

Refers to establishing or influencing the outcome or nature of something.

Male Sex

The biological category, typically associated with XY chromosomes in humans, that produces small, mobile sperm cells for reproduction.

Methyl Groups

Methyl groups are chemical groups consisting of one carbon atom bonded to three hydrogen atoms (-CH3), often influencing the function and properties of organic molecules.