A Conglomerate Is Best Described as ________

question 21

Multiple Choice

A conglomerate is best described as ________.

• A) a business that fits into a specific market or industry category
• B) a business that is not diversified
• C) a business that sells only one product
• D) a highly diversified business that does not fit into one specific category

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Definitions:

WEBS

Exchange-traded funds (ETFs) that specifically track the performance of non-U.S. markets, commonly known as World Equity Benchmark Shares.

American Depository Receipts

Certificates issued by U.S. banks representing a specified number of shares in a foreign company's stock, traded on U.S. financial markets.

S&P 500 Portfolio

A portfolio of investments that aims to mimic the performance of the S&P 500, a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States.

Market Portfolio

A theoretical portfolio of all investable assets, weighted by market capitalization, that represents the entire market.