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. A diversified strategy is therefore valuable not because every component will succeed, but because they are unlikely to fail simultaneously. B. Different risks often become dangerous when several exposures depend on the same underlying condition. C. Holding many investments offers little protection if all of them collapse when the same shock occurs. D. True diversification requires differences in sources of risk rather than merely a larger number of assets.
Correct Answerसही उत्तर
A. BCDA
Explanationव्याख्या
(English): B introduces correlated risks.
C gives the example of assets responding to the same shock.
D defines genuine diversification.
A concludes why such diversification works.
Overall Meaning: Diversification protects against risk only when exposures fail for different reasons.
व्याख्या (Hindi): B एक ही underlying condition पर निर्भर risks की समस्या बताता है।
C समझाता है कि केवल बहुत सारे investments रखना पर्याप्त नहीं है यदि सभी एक ही shock से गिरें।
D true diversification की परिभाषा देता है और A उसका लाभ बताता है।
समग्र अर्थ: Diversification तभी सुरक्षा देता है जब अलग-अलग investments के जोखिम के स्रोत भी अलग हों।
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