1. What is the purpose of diversification?
Maximize possible returns.
Increase the risk of your portfolio.
Lower the overall risk of your portfolio.
All of the above are correct.
2. What is correct?
The market value of all outstanding debt is the market capitalization of a company.
The book value of the company’s debt is the market capitalization of a company.
The market value of all outstanding shares is the market capitalization of a company.
The book value of the company’s total equity is the market capitalization of a company.