Portfolio diversification
A) means that one should own at least 10 different stocks.
B) means that one should own at least two different stocks whose prices do not always move in the same direction.
C) means that one should own at least two different stocks.
D) is something that can be achieved only by the very wealthy.
E) means that one should own at least five different stocks whose prices do not always move in the same direction.
Correct Answer:
Verified
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Q130: Investors diversify because they are risk-averse.
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Q132: Which of the following is true?
A)Risk declines
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Q136: Some risk is inherent in a market
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Q138: Seeking to own assets of many different
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