We Would Almost Always Find That the Beta of a Diversified

question 64

True/False

We would almost always find that the beta of a diversified portfolio is less stable over time than the beta of a single security.

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Definitions:

Operative

An operative is a worker, especially skilled in manual, clerical, or administrative work, often employed within the operations of a business or organization.

Punishment

Discourages a behavior by making an unpleasant consequence contingent on its occurrence.

Reward

A reward is an incentive or benefit given in recognition of someone's effort, achievement, or contribution.

Self-Control

The ability of an individual to regulate their emotions, thoughts, and behavior in face of temptations and impulses.