If an Investor Buys Enough Stocks, He or She Can

question 54

True/False

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

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Definitions:

Well-Being

The state of being comfortable, healthy, or happy, encompassing both physical and mental health.

Retirement

The period in an individual's life when they withdraw from their occupation or professional career, often due to reaching a certain age.

Nursing Home

A residential facility for individuals who require continuous nursing care and have significant difficulty coping with the required activities of daily living.

Social Activity

Involves participation in events or activities that facilitate interaction and engagement with other people, contributing to community and personal relationships.