Which of the following statements about diversification is (are) correct?
I. Diversification may be able to reduce the risk of a portfolio to less than the weighted average risk of the assets.
II. Diversification is always prudent and should be expanded to include new, unrelated products whenever possible.
A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements I and II are correct.
D) Neither statement I nor II is correct.
Correct Answer:
Verified
Q1: All except which of the following are
Q2: Which of the following is (are) a
Q4: Which of the following is generally used
Q5: Which of the following is a loss
Q6: When a lack of information can result
Q7: Which of the following is a motive
Q8: Forward contracts are most common in _
Q9: To offset the lack of marketing information
Q10: Which of the following is a related
Q11: Which of the following is not a
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