The Main Benefit of Diversification Is That It Reduces the Exposure

question 73

True/False

The main benefit of diversification is that it reduces the exposure of your investments to the adverse effects of any individual stock.

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Definitions:

Accounts Payable

Liabilities or amounts owed by a company to creditors for goods and services that have been purchased on credit but not yet paid for.

Journal

A chronological record where financial transactions are initially recorded using the double-entry accounting system before being transferred to accounts in the ledger.

Chronological Order

This is the arrangement of events, or information, according to the time sequence in which they occurred or were created.

Account Number Order

The sequence or arrangement of account numbers, often used in organizing financial records or transactions for easy access and reference.