Diversification Tends to Raise the Standard Deviation of a Portfolio

question 56

True/False

Diversification tends to raise the standard deviation of a portfolio.

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Definitions:

Social

Relating to society or its organization, including interactions and relationships among individuals.

Motivated

Having a strong reason or desire to act or accomplish something, often driven by internal or external factors.

Needs Hierarchy Model

A theoretical framework introduced by Abraham Maslow, proposing that human needs are arranged in a hierarchy, with basic needs at the bottom and self-actualization at the top.

Widely Recognized

Known or acknowledged by a large number of people or across a broad spectrum.