The Primary Purpose of Portfolio Diversification Is To

question 91

Multiple Choice

The primary purpose of portfolio diversification is to:

• A) increase returns and risks.
• B) eliminate all risks.
• C) eliminate asset-specific risk.
• D) eliminate systematic risk.
• E) lower both returns and risks.

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Definitions:

Global Marketing

A marketing strategy that consciously addresses customers, markets, and competition throughout the world.

Zone

A specific area or segment within a larger space, designated for a particular purpose or activity.

Consumers

People who purchase goods and services for personal use.

Organizations

Entities, either public or private, comprised of people working together towards a common goal, structured in such a way as to enable collective task accomplishment.