Most of the Risk-Reduction Benefits from Diversification Can Be Achieved

question 16

Multiple Choice

Most of the risk-reduction benefits from diversification can be achieved in a portfolio consisting of

• A) 5 to 10 shares
• B) 10 to 15 shares
• C) 15 to 20 shares
• D) 20 to 25 shares

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Definitions:

Meaning

The significance or understanding that is attached to something, such as a word, sign, symbol, or gesture, in communication.

Natural Work Units

Organizational divisions or groupings that reflect a logical segmentation of work based on process, function, or customer, facilitating team coherence and effectiveness.

Task Identity

The degree to which a job involves completing a whole, identifiable piece of work from start to finish with a visible outcome.

Task Significance

The degree to which a job has a substantial impact on the lives of other people, either in the immediate organization or in the external environment.