Post Utme Ksu 2020 Commerce Question 11

Practice objective / multiple choice question 11 from the 2020 Post Utme Ksu Commerce examination.

Post Utme Ksu 2020 Commerce Objective / Multiple Choice
Question 11 POST_UTME_KSU • 2020 • COMMERCE • objective

The concept of risk management in insurance is closely related to the idea of diversification. Explain how diversification can help reduce risk in an insurance portfolio.

Answer Options

Correct Answer A. Diversification can help reduce risk by spreading investments across different asset classes.
B. Diversification can help reduce risk by investing in a single asset class with a high potential for growth.
C. Diversification can help reduce risk by reducing the overall value of the portfolio.
D. Diversification can help reduce risk by increasing the overall value of the portfolio.
Correct Answer
A
Correct Option:
Diversification can help reduce risk by spreading investments across different asset classes.

About This Question

This is Post Utme Ksu 2020 Commerce Question 11. It is one of the objective questions from the 2020 Post Utme Ksu Commerce examination.

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