A Diversified Portfolio Has Many Stocks, as Opposed to a Single

question 38

Multiple Choice

A diversified portfolio has many stocks, as opposed to a single stock. Diversification can occur with as few as ____ stocks.

• A) 5
• B) 10
• C) 20
• D) 100

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Definitions:

Options

Choices or alternatives available in any situation, allowing for decision-making based on preferences, needs, or desired outcomes.

Status Quo Bias

A preference for the current state of affairs, with changes perceived as a loss.

Omission Bias

A cognitive bias that involves the tendency to judge harmful actions as worse, or less moral, than equally harmful omissions (inactions).

Decisions

The method of selecting options through recognizing a decision, collecting information, and evaluating different solutions.