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.

---

Definitions:

Hydromechanical 5-Speed Transmission

A transmission system that combines hydraulic and mechanical operations to provide five distinct gear ratios for driving.

Transmission Pump

A component of an automatic transmission that supplies hydraulic pressure for shifting gears.

Hydromechanical Transmission

A type of transmission that combines hydraulic and mechanical systems to transfer and vary power.

Transmission Oil Pump

A pump located inside the transmission that circulates transmission fluid through the system, ensuring smooth operation of the gears and cooling.