Financial Diversification Is a Strategy of Investing in a Wide

question 124

True/False

Financial diversification is a strategy of investing in a wide variety of securities in order to reduce risk.

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Definitions:

Flex Plate

A metal disc that connects the engine to the torque converter in automatic transmission vehicles, facilitating power transfer.

Starter Motor Pinion

A gear on the starter motor that engages with a gear on the engine to crank the engine during starting.

Freewheel

Freewheel refers to a mechanism in a bicycle, motorcycle, or vehicle allowing the wheels to rotate freely without engaging the drivetrain, especially when moving downhill or when not pedaling.

Lock-up Phase

The lock-up phase refers to a stage in automatic transmission where the torque converter locks, directly connecting the engine to the transmission to improve efficiency.