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:

Activity-Based Costing

A costing method that assigns manufacturing overhead and indirect costs to products and services based on their use of activities.

Process Cost Systems

A method of accounting used in manufacturing where costs are assigned to products, usually in continuous, repetitive operations.

Process Cost Accounting

A method of accounting that accumulates production costs for each process or department within a manufacturing facility.

Mass-Produced

Items that are manufactured in large quantities using efficient production techniques and often assembly lines to lower costs.