21-13.The Following Is NOT True

question 12

Multiple Choice

21-13.The following is NOT true:

• A) diversification reduces the risk associated with holding an asset in isolation
• B) diversification reduces risk even when the returns on the combined assets are not correlated
• C) transaction costs often outweigh the benefits of diversification
• D) none of the above

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Definitions:

Organizational Goals

The strategic objectives that a company or an institution aims to achieve in a set period of time, guiding its decisions and resource allocation.

Customer Complaints

Expressions of dissatisfaction or issues raised by customers regarding a company's products, services, or operations, prompting a need for resolution.

Positive Attitude

A mindset that focuses on the good aspects of any situation and expects positive outcomes, influencing one’s behavior and interactions.

Human Skills

Abilities that enable individuals to work well with others, such as communication, empathy, and leadership.