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Buying More of the Same Stock That Has Just Plummeted

Question 105

Multiple Choice

Buying more of the same stock that has just plummeted in value is an example of


A) borrowing to invest.
B) an investment practice to improve overall return on a portfolio without diversification.
C) a wise move because your average price will make it easier for you to eventually profit.
D) taking excessive risk to recover from a losing position.

Correct Answer:

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