In Reality, Many Stocks Are Influenced by the Same Conditions

question 39

True/False

In reality, many stocks are influenced by the same conditions as the stock market overall, so diversification by investing only in stocks is partially limited.

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Definitions:

Corporate Social Responsibility

A business practice that involves participating in initiatives that benefit society, emphasizing ethical behavior, sustainable operations, and community development.

Ethical Responsibilities

Obligations to act in a morally sound way, considering the well-being of others and the environment in decision-making processes.

Discretionary Actions

Actions based on individual judgment or choice rather than set standards, often pertaining to corporate or governmental decision-making.

Social Responsibility

The obligation of individuals, organizations, and businesses to act in a way that benefits society at large, beyond their own interests.