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
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.
Step by step
Solved in 3 steps
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education