Diversification Reduces the Risk of a Portfolio Because the Prices

question 65

True/False

Diversification reduces the risk of a portfolio because the prices of different securities do not move exactly together.

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Definitions:

Output Standards

Measure performance results in terms of quantity, quality, cost or time.

Performance Results

The outcomes or outputs stemming from the activities or tasks performed by an individual or organization, often measured against set goals or standards.

Accomplished Work

The completed tasks or projects that have been successfully carried out.

Controlling Function

One of the core functions of management, involving monitoring performance and implementing necessary actions to achieve organizational goals.