If an Investor Buys Enough Stocks, He or She Can

question 57

True/False

If an investor buys enough stocks, he or she can, through diversification, eliminate all of the market risk inherent in owning stocks, but as a general rule it will not be possible to eliminate all diversifiable risk.

---

Definitions:

Profitable Product

A product that generates revenue exceeding its costs of production and distribution, leading to a profit.

Intermediate Calculations

Calculations performed as part of a more extensive analysis or accounting process, often necessary for deriving final results or conclusions.

Grinding Machine Time

The amount of time a grinding machine is used in production, which can factor into manufacturing costs and efficiency.

Production Facility

A location equipped with machinery and equipment for manufacturing goods, often structured to optimize workflow and efficiency.