A Diversified Portfolio of Securities Is Characterized By

A diversified portfolio of securities is characterized by:

A) dissimilar risk-return characteristics of the financial instruments.
B) concentration on a single industry which has the highest growth rate.
C) erratic loss potential due to investment in latest financial vehicles.
D) unstable earnings for the entire investment horizon.
E) investing on a single security which has the lowest risk and the highest returns.

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