Answered: What is the main purpose of…

What is the main purpose of diversification in an investment portfolio? A) To maximize returns B) To reduce risk C) To increase market share D) To monitor stock performance

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter2: Risk And Return: Part I

Section: Chapter Questions

Problem 10MC

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What is the main purpose of diversification in an investment portfolio?

A) To maximize returns
B) To reduce risk
C) To increase market share
D) To monitor stock performance

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