The MOST Diversified Portfolio in Terms of Risk Is $100,000

question 134

Multiple Choice

The MOST diversified portfolio in terms of risk is $100,000 worth of stock in:

• A) 10 companies in the same industry.
• B) 10 companies in two industries.
• C) 10 companies in five industries.
• D) one company that sells 10 products.

---

Definitions:

Cohort

A group of individuals sharing a common characteristic, typically born around the same time, and studied to observe how specific variables affect them over time.

Concept

A mental category used to represent a class or group of objects, people, organizations, events, situations, or relations that share common characteristics or attributes.

Template

A preset model or pattern that serves as a guide for the creation or replication of objects, documents, or designs.

Concepts

General ideas or understandings that are used to group together objects, events, qualities, or abstractions that are similar in some way.