The principle of diversification tells us that:Multiple Choicespreading an investment across many diverse assets will eliminate all of a portfolio's risk. spreading an investment across many diverse assets will lower a portfolio's level of risk. concentrating an investment in two or three large stocks will eliminate all of a portfolio's risk. concentrating an investment in three companies all within the same industry will greatly reduce the overall risk of a portfolio. spreading an investment across five diverse companies will not lower a portfolio's level of risk.

Suppose that the u.s. dollars-mexican pesos exchange rate is fixed by the u.s. and mexican governments. assume also that labor is mobile between the united states and mexico due to low transportation costs.which of the following situations is likely to happen as a result of a simultaneous increase in the demand for u.s. goods and decrease in the demand for mexican goods? (pick mexican unemployment rate increases, and the country undergoes bad economic times for a sustained u.s. unemployment rate increases, and the country undergoes bad economic times for a sustained mexican unemployment rate rises at first, but it soon drops as unemployed mexicans move to the united states for mexican unemployment rate rises at first, but then it drops as mexican pesos depreciate against u.s. dollars.