Which of the Following Statements Is TRUE

question 56

Multiple Choice

Which of the following statements is TRUE?
I.Diversification is a process of removing systematic risk from a portfolio.
II.Diversification is a process of maximizing possible returns of a portfolio.

• A) Only I is true.
• B) Only II is true.
• C) Both I and II are true.
• D) Neither I nor II are true.

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Definitions:

Enforceable

describes a contract or covenant that can be legally imposed or carried out through legal action.

Incapacitated

A state where an individual is unable to take care of themselves or manage their affairs due to physical or mental limitations.

Contract Law

The body of law that governs the creation, enforcement, and interpretation of agreements between parties.

Jurisdictions

The official power to make legal decisions and judgments, often within a specified geographic area or over certain types of legal cases.