Question: Diversification refers to: a. Custom farming for a fixed payment b. Producing multiple enterprises and/or investing off-farm in order to reduce overall risk. c. Purchasing

Diversification refers to:

a.

Custom farming for a fixed payment
b.

Producing multiple enterprises and/or investing off-farm in order to reduce overall risk.
c.

Purchasing crop insurance
d.

Producing stable enterprises with less variability in yield.

The simple rate of return and the internal rate of return will be the same for any investment.

True

False

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