Portfolio Diversification

question 121

Multiple Choice

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.

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Definitions:

Defamation Action

A legal lawsuit filed against an individual or entity for making false statements that cause harm to someone's reputation.

Public Official

A person holding a position of authority or service in a government organization, who is responsible for upholding and executing the laws and public policies.

Exclusive Federal Power

Refers to powers reserved solely for the federal government by the constitution, prohibiting states from intervening.

Police Power

The capacity of the states to regulate behavior and enforce order within their territory for the betterment of the health, safety, morals, and general welfare of their inhabitants.