Most Undiversifiable Risk Can Be Eliminated by Creating a Portfolio

question 133

True/False

Most undiversifiable risk can be eliminated by creating a portfolio of around 30 stocks.

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Definitions:

Defense Mechanism

Psychological strategies used unconsciously by individuals to protect themselves from anxiety arising from unacceptable thoughts or feelings.

Neo-Freudian Psychologist

A psychologist belonging to a movement that adapted and extended Freud's theories, focusing more on social and cultural factors for personality.

Collective Unconscious

Carl Jung's concept of a part of the unconscious mind that is derived from ancestral memory and experience and is common to all humankind.

Inferiority

Feeling lower in status or quality compared to others, which can impact an individual's self-esteem and motivations.