Diversification Is the Inclusion of a Number of Different Investment

question 43

True/False

Diversification is the inclusion of a number of different investment vehicles in a portfolio with the goal of increasing returns or reducing risk.

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Definitions:

Population Parameters

Characteristics that summarize or describe aspects of a population, such as mean, variance, or median.

N - 1 Adjustment

A statistical method used to correct the bias in the variance estimate of a sample.

Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values.

Scores

Quantitative values assigned to individuals or items for the purpose of evaluation or measurement.