Portfolio Diversification Generally Increases Risk for an Investor

question 94

True/False

Portfolio diversification generally increases risk for an investor.

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Definitions:

Theory of Planned Behavior

A psychological theory that predicts an individual's intention to engage in a behavior at a specific time and place, considering attitudes, subjective norms, and perceived control.

Theory of Planned Behavior

A theory that predicts an individual's intention to engage in a behavior at a specific time and place, considering attitudes, subjective norms, and perceived control over the behavior.

Behavioral Intentions

An individual's stated likelihood or plan to perform a particular behavior, considered a predictor of actual behavior in various models of behavioral change.

Achievement Goal Theory

A theory that focuses on how individuals are motivated by their goals, specifically in achievement settings like school and sports.