Diversification Will Normally Reduce the Riskiness of a Portfolio of Stocks

question 37

True/False

Diversification will normally reduce the riskiness of a portfolio of stocks.

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Definitions:

Pro-Social Risk Takers

Individuals who engage in risky behaviors that are intended to benefit others or society.

Sensation Seeking Scores

Quantitative measures of an individual’s preference for varied, novel, complex, and intense sensations and experiences.

Anti-Social Risk Takers

Individuals who engage in behavior that goes against societal norms and may involve danger, often disregarding the consequences for themselves or others.

Zuckerman

Marvin Zuckerman, a psychologist known for his research on sensation seeking and the development of the Sensation Seeking Scale.