Diversification

question 66

Multiple Choice

Diversification

• A)increases the likely fluctuation in a portfolio's return.Thus,the likely standard deviation of the portfolio's return is higher.
• B)increases the likely fluctuation in a portfolio's return.Thus,the likely standard deviation of the portfolio's return is lower.
• C)reduces the likely fluctuation in a portfolio's return.Thus,the likely standard deviation of the portfolio's return is higher.
• D)reduces the likely fluctuation in a portfolio's return.Thus,the likely standard deviation of the portfolio's return is lower.

Identify the characteristics and effects of modernization and urbanization.

Understand the development and implications of nuclear power and its global threats.

Acknowledge the process of cultural adaptation, assimilation, and resistance.

Grasp the importance and symbolic significance of international declarations on human rights.

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Definitions:

Downsloping

Typically describes a graph line that shows a decrease in a variable as another variable increases, often used in economics to illustrate concepts like demand curves.

Profit-Maximizing

The technique a firm uses to ascertain the optimal pricing and production levels for achieving maximum profit.

Short Run

A period in which at least one input (like plant and equipment) is fixed and cannot be changed by a business.

Long Run

A period of time in which all factors of production and costs are variable, allowing all inputs to be adjusted.