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:

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a comprehensive classification and diagnostic guide used by mental health professionals.

Diagnostic Criteria

A set of symptoms and signs used to determine the presence of a particular disease or condition.

Bulimia Nervosa

An eating disorder characterized by habitually engaging in out-of-control overeating followed by unhealthy compensatory efforts, such as self-induced vomiting, fasting, abuse of laxatives and diuretics, and excessive exercise.

Self-induced Vomiting

The act of voluntarily causing oneself to vomit, often as a symptom of eating disorders like bulimia nervosa.