Diversification

question 81

Multiple Choice

Diversification

• A)increases the likely fluctuation in a portfolio's return, but reduces market risk.
• B)increases the likely fluctuation in a portfolio's return, but reduces firm-specific risk..
• C)reduces the likely fluctuation in a portfolio's return and reduces market risk.
• D)reduces the likely fluctuation in a portfolio's return and reduces firm-specific risk.

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Definitions:

Neurotransmitter

A chemical substance that is released at the end of a nerve fiber by the arrival of a nerve impulse and, by diffusing across the synapse, causes the transfer of the impulse to another nerve fiber, a muscle fiber, or some other structure.

Deliberately

Acting with careful consideration or intention, often implying a mindful or planned approach.

Social Psychology

Researching scientifically into the way people perceive, experience emotions, and act when they are in social environments.

Wounded Pride

A sense of injury or insult to one's self-esteem or dignity.