If a Person Diversifies Her Stock Portfolio, Then

question 45

Multiple Choice

If a person diversifies her stock portfolio, then:

• A) the expected return of her portfolio will increase.
• B) the risk of her portfolio will decrease.
• C) both the risk and expected return of her portfolio will increase.
• D) neither the risk nor the expected return of her portfolio will change.

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Definitions:

Market

A place or mechanism where buyers and sellers interact to trade goods, services, or information.

Geography

The study of the Earth's physical features, environment, and human-environment interactions.

Sales Potential

The maximum total sales of a product or service that could be achieved within a specific market over a given time period.

Follow-Up

Maintaining contact with a customer (or prospect) in order to evaluate the effectiveness of the product and the satisfaction of the customer.