Post Utme Achievers University 2021 Commerce Question 38

Practice objective / multiple choice question 38 from the 2021 Post Utme Achievers University Commerce examination.

Post Utme Achievers University 2021 Commerce Objective / Multiple Choice
Question 38 POST_UTME_ACHIEVERS_UNIVERSITY • 2021 • COMMERCE • objective

A firm's risk management strategy involves diversification of its investments to minimize potential losses. Which of the following is a characteristic of a well-diversified portfolio?

Answer Options

A. Low correlation between assets
B. High risk tolerance
Correct Answer C. Diversification across different asset classes
D. High expected return
Correct Answer
C
Correct Option:
Diversification across different asset classes

About This Question

This is Post Utme Achievers University 2021 Commerce Question 38. It is one of the objective questions from the 2021 Post Utme Achievers University Commerce examination.

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