By holding a variety of stocks in a diversified portfolio,the losses incurred when some stocks fail to live up to their promises are offset by the gains enjoyed when other stocks exceed their promise.

Name: By holding a variety of stocks in a diversified portfolio,the losses incurred when some stocks fail to live up to their promises are offset by the gains enjoyed when other stocks exceed their promise.
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Question

Quizplus · Accepted Answer

This statement is true. Diversification helps spread out risk and minimize losses in a portfolio.

By Holding a Variety of Stocks in a Diversified Portfolio,the