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:

Mechanical

Pertaining to machines or the principles of mechanics; often describes processes or systems that operate in a machine-like, automatic manner.

Priming

A technique in psychology used to train people's cognitive responses by exposing them to stimuli that influences their subsequent reactions without their awareness.

Anagram

A word or phrase formed by rearranging the letters of a different word or phrase, typically using all the original letters exactly once.

Cognitive Facilitation

The enhancement of mental processes, such as thinking, learning, and memory, often through external assistance or technological means.