The Objective of Diversification in an Investment Portfolio Is

question 89

Multiple Choice

The objective of diversification in an investment portfolio is

• A) to make sure you do not have all your eggs in one basket.
• B) to eliminate non-systematic or company specific risk.
• C) to eliminate systematic portfolio risk.
• D) to hold a lot of strong growth stocks.

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Definitions:

Directed Verdict

A legal ruling by a judge, made during a trial, declaring that no reasonable jury could decide in favor of the opposing party based on the presented evidence.

New Trial

A court-ordered repetition of all or part of a legal proceeding, usually due to procedural error, new evidence, or unfair trial.

Judgment Creditor

A creditor who is legally entitled by a court’s judgment to collect the amount of the judgment from a debtor.

Court's Judgment

The final decision made by a judge or court in a legal case, determining the resolution of the dispute.