Which of the Following Statements Is Correct with Regards to Diversification

question 95

Multiple Choice

Which of the following statements is correct with regards to diversification?

• A) Diversifying reduces the return of the portfolio.
• B) Diversifying reduces the market risk of the portfolio.
• C) Diversifying reduces the dollar return of the portfolio.
• D) None of the statements are correct.

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Definitions:

Hours Per Day

A measure of time, specifically the number of hours spent on a particular activity or activities within a 24-hour period.

Common Victim

A term that could refer to a group or type of individuals frequently targeted or affected by a specific problem, crime, or injustice.

Plagiarism

The act of using someone else's work or ideas without proper attribution, presenting them as one's own.

Original Author

The first creator or writer of a particular piece of work.