Which of the following statements about diversification is INCORRECT? A) Diversification is spreading your assets across different asset classes, sectors, countries or issuers of securities. B) Diversification is about purchasing shares with different correlations. C) Diversification is about “putting all your eggs in one basket”. D) Diversification is a benefit of investing in managed funds.
Which of the following statements about diversification is INCORRECT? A) Diversification is spreading your assets across different asset classes, sectors, countries or issuers of securities. B) Diversification is about purchasing shares with different correlations. C) Diversification is about “putting all your eggs in one basket”. D) Diversification is a benefit of investing in managed funds.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 3MCQ
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Which of the following statements about diversification is INCORRECT?
A) Diversification is spreading your assets across different asset classes, sectors, countries or issuers of securities.
B) Diversification is about purchasing shares with different correlations.
C) Diversification is about “putting all your eggs in one basket”.
D) Diversification is a benefit of investing in managed funds.
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