What is diversification in portfolio management?A) Investing in a single industry to maximize returnsB) Spreading investments across different assets to reduce riskC) Concentrating investments in a high-performing stockD) Avoiding low-risk investments entirely

What is diversification in portfolio management?A) Investing in a single industry to maximize returnsB) Spreading investments across different assets to reduce riskC) Concentrating investments in a high-performing stockD) Avoiding low-risk investments entirely

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 6QTD

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Question

What is diversification in portfolio management?
A) Investing in a single industry to maximize returns
B) Spreading investments across different assets to reduce risk
C) Concentrating investments in a high-performing stock
D) Avoiding low-risk investments entirely

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