Research Suggests That a Portfolio of 20 or 30 Different

question 148

True/False

Research suggests that a portfolio of 20 or 30 different stocks can eliminate most of a portfolio's systematic risk.

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Definitions:

Case Study

A non-experimental investigative method resulting in a description of the past and current functioning of a single individual, generally the result of information gathered through intense interactions over long periods. Variables such as family history, education, employment history, medical history, social relationships, and the patient’s level of psychological adjustment are described. The goal is a description of an individual’s current problem, and its relation to his or her past. A case study seeks to provide a theory concerning the etiology of a patient’s problem or psychological makeup, and/or a course of treatment and outcome. The oldest approach to the study of abnormal behaviour.

Experimentally Accepted

Validated or confirmed through designed and controlled experiments.

Statistically Significant

A mathematical indication that a result is not likely to have occurred by chance alone, according to a predefined threshold of probability (the p-value).

Real Life

Pertaining to or involving actual events, situations, and experiences, as opposed to theoretical concepts or hypothetical scenarios.