Post Utme Noun 2019 Commerce Question 37

Practice objective / multiple choice question 37 from the 2019 Post Utme Noun Commerce examination.

Post Utme Noun 2019 Commerce Objective / Multiple Choice
Question 37 POST_UTME_NOUN • 2019 • COMMERCE • objective

A firm has a portfolio of assets that includes stocks, bonds, and real estate. The firm uses a diversification strategy to manage its investment risk. What is the primary benefit of diversification in this investment portfolio?

Answer Options

A. Increased potential returns
Correct Answer B. Reduced investment risk
C. Improved liquidity
D. Enhanced asset allocation
Correct Answer
B
Correct Option:
Reduced investment risk

About This Question

This is Post Utme Noun 2019 Commerce Question 37. It is one of the objective questions from the 2019 Post Utme Noun Commerce examination.

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