Which item below is not a guideline for effective diversification? Diversify
A)among tangibles and intangibles.
B)among assets and liabilities.
C)on a global basis.
D)within asset groups.

Question

Quizplus · Accepted Answer

Diversification among assets and liabilities is not a guideline for effective diversification. Assets and liabilities are two separate categories that cannot be diversified with each other. Effective diversification involves spreading investment across multiple asset classes in order to minimize the impact of market fluctuations on a portfolio.

Which Item Below Is Not a Guideline for Effective Diversification