Answered: In finance, diversification is used…

In finance, diversification is used to:A) Increase expected returnsB) Minimize transaction costsC) Reduce unsystematic riskD) Eliminate all risks

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter5: Risk Analysis

Section: Chapter Questions

Problem 8QE

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Question

In finance, diversification is used to:
A) Increase expected returns
B) Minimize transaction costs
C) Reduce unsystematic risk
D) Eliminate all risks

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