Diversification is good: Select one: a. To increase the net financial cash flows of your portfolio. b. To minimize the risk of your portfolio c. To minimise possible returns. d. None of the given answers is correct.
Diversification is good: Select one: a. To increase the net financial cash flows of your portfolio. b. To minimize the risk of your portfolio c. To minimise possible returns. d. None of the given answers is correct.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Diversification is good:
Select one:
a. To increase the net financial cash flows of your portfolio.
b. To minimize the risk of your portfolio
c. To minimise possible returns.
d. None of the given answers is correct.
Expert Solution
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Step 1
Introduction :
In simple words, diversification refers to the practice in which the investor invest their money in stocks that are differentiated based upon sector, style, business cycle etc.
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