The purpose of diversification is to
A. reduce the volatility of a portfolio’s return.
B. raise the volatility of a portfolio’s return.
C. reduce the average return on a portfolio.
D. raise the average return on a portfolio.
Answer:A
The purpose of diversification is to
A. reduce the volatility of a portfolio’s return. B. raise the volatility of a portfolio’s return. C. reduce the average return on a portfolio. D. raise the average return on a portfolio.