Start learning →

Which statement best describes MPT's idea of diversification?

AOwn only the best asset
BOwn many identical assets
COwn different asset types
DOwn only cash holdings
Answer & Solution
Correct answer: C. Own different asset types
Holding different kinds of assets means their individual risks partly offset one another.
Practise this question with Quill — CA Final →

Keep practising Modern Portfolio Theory

Browse all Modern Portfolio Theory questions for CA Final, or explore more Strategicfinancialmanagement topics.

Start a Modern Portfolio Theory lesson →
Related questions