Reduction of risk by holding large number of securities in portfolio of assets is classified as
A. diversification
B. selling ability
C. reduction ability
D. director ability
Answer: Option A
Solution (By Examveda Team)
Reduction of risk by holding large number of securities in portfolio of assets is classified as diversification. A diversified investment is a portfolio of various assets that earns the highest return for the least risk. A typical diversified portfolio has a mixture of stocks, fixed income, and commodities.This Question Belongs to Management >> International Finance And Treasury
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