_____ is a process of choosing securities in order to create a portfolio that provides an acceptable level of return and an acceptable exposure to risk.

Question

Quizplus · Accepted Answer

Diversification is the process of selecting a variety of securities in order to reduce risk. By holding investments in different asset classes, industries, and regions, investors can minimize the impact of any single security or group of securities on their overall portfolio. Diversification can provide an acceptable level of return while managing risk exposure. Capitalization refers to the total market value of a company's outstanding shares of stock, while risk disposition, stratification, and risk ramification are not commonly used financial terms.

_____ Is a Process of Choosing Securities in Order to Create