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Is It Correct to Claim That Diversification Provides a Benefit

Question 69

Multiple Choice

Is it correct to claim that diversification provides a benefit of "risk spreading"?


A) Yes, in most cases, but it's of little interest or value to shareholders, since they can do that more easily and cheaply themselves
B) No, usually that is not the case
C) The answer is not that simplistic
D) Risk spreading is not always a benefit

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