Individual Investors Can Generally Diversify Their Own Stock Portfolios More

question 64

True/False

Individual investors can generally diversify their own stock portfolios more efficiently than corporate managers who diversify the companies they manage.

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Definitions:

Economic Benefits

The gains received or receivable by an entity as a result of past or future transactions or events.

Asset

A present economic resource controlled by the entity as a result of past events. An economic resource is a right that has the potential to produce economic benefits.

Control

The power to influence or direct the behavior of people or the course of events.

Conceptual Framework

An underlying structure in accounting that guides the development of standards and the preparation of financial statements.