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In the context of portfolio theory, what is diversification primarily intended to do? A) Increase returns. B) Reduce risk. C) Maximize tax efficiency. D) Simplify investment management.

In the context of portfolio theory, what is diversification primarily intended to do? A) Increase returns. B) Reduce risk. C) Maximize tax efficiency. D) Simplify investment management.

General Chemistry - Standalone book (MindTap Course List)
General Chemistry - Standalone book (MindTap Course List)
11th Edition
ISBN:9781305580343
Author:Steven D. Gammon, Ebbing, Darrell Ebbing, Steven D., Darrell; Gammon, Darrell Ebbing; Steven D. Gammon, Darrell D.; Gammon, Ebbing; Steven D. Gammon; Darrell
Publisher:Steven D. Gammon, Ebbing, Darrell Ebbing, Steven D., Darrell; Gammon, Darrell Ebbing; Steven D. Gammon, Darrell D.; Gammon, Ebbing; Steven D. Gammon; Darrell
Chapter6: Thermochemisty
Section: Chapter Questions
Problem 6.94QP
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In the context of portfolio theory, what is diversification primarily intended to do? A) Increase returns. B) Reduce risk. C) Maximize tax efficiency. D) Simplify investment management.
Transcribed Image Text:In the context of portfolio theory, what is diversification primarily intended to do? A) Increase returns. B) Reduce risk. C) Maximize tax efficiency. D) Simplify investment management.
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