A Well-Diversified Portfolio Would Consist of a Variety of Investments

question 342

True/False

A well-diversified portfolio would consist of a variety of investments and even cash for emergencies. The important thing is that the choice of investments spreads the risk. Some investments may perform very well in any one year while others may lag. Those performing well will balance out those that are underperforming.

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Definitions:

Subcutaneous Tissue

The layer of tissue beneath the skin that contains fat and connective tissues.

Epidermis

The surface layer of the skin, responsible for water resistance and establishing skin coloration.

Dermis

The layer of skin beneath the epidermis that contains nerve endings, sweat glands, and hair follicles.

Epidermis

The external layer of skin which serves as a water-resistant barrier and determines our skin color.