Investing in several corporate stocks that have different characteristics is referred to as:
A)diversification.
B)portfolio consolidation.
C)asset translation.
D)income determination.

Question

Quizplus · Accepted Answer

Diversification involves investing in a variety of different stocks that have different characteristics such as industry, size, growth potential, etc. This helps to spread the risk and reduces the potential impact of any one stock's performance on the overall portfolio. Portfolio consolidation, asset translation, and income determination are not related to diversification.

Investing in Several Corporate Stocks That Have Different Characteristics Is