Which of the Following Is NOT a Portfolio Diversification Technique

question 26

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:

Lymphatic System

A network of tissues and organs, including lymph nodes, vessels, and fluid (lymph), that helps rid the body of toxins and waste, facilitating immune responses.

Atherosclerosis

A cardiovascular disease characterized by the buildup of fatty deposits, or plaques, on the inner walls of arteries, leading to reduced blood flow.

LDLs

LDLs (Low-Density Lipoproteins) are particles in the blood that transport cholesterol to cells, often referred to as "bad" cholesterol due to their association with increased risk of heart disease.

Atrioventricular Valves

Valves located between the atria and ventricles of the heart that prevent the backflow of blood.