Para Jumble practice question for SSC. Review the correct answer and explanation, then continue with related practice below.
Arrange the following sentences in the correct order. A. This makes diversification useful even when each individual asset appears attractive on its own. B. Investment risk depends not only on the risk of individual assets but also on how their returns move together. C. Losses in one investment may be partly offset when another performs well under the same conditions. D. A diversified portfolio therefore aims to avoid excessive dependence on a single source of return.
Correct Answerसही उत्तर
A. BCAD
Explanationव्याख्या
(English): B introduces correlation among asset returns.
C explains the benefit of offsetting movements.
A draws the implication for diversification.
D gives the portfolio principle.
Overall Meaning: Diversification reduces risk by avoiding dependence on assets that all react in the same way.
व्याख्या (Hindi): B investment risk को अलग-अलग assets के साथ उनके आपसी संबंध से जोड़ता है।
C एक asset के नुकसान को दूसरे के लाभ से offset होने का उदाहरण देता है।
A diversification का महत्व बताता है और D portfolio strategy का निष्कर्ष देता है।
समग्र अर्थ: Diversification अलग-अलग प्रकार के निवेश रखकर एक ही स्रोत पर निर्भरता कम करता है।
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