It Is Easier for Individual Investors to Diversify Their Risk

question 22

True/False

It is easier for individual investors to diversify their risk by buying shares in different firms than for the firms to combine their operations.

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Definitions:

Bonding π Molecular Orbital

A type of molecular orbital that forms when p-orbitals overlap linearly, allowing for the delocalization of π electrons across adjacent atoms.

Allyl Anion

A negatively charged species featuring a carbon atom adjacent to a double bond, important in organic reactions.

Major Product

The product that is formed in the greatest amount from a chemical reaction, determined by the reaction's mechanism and conditions, including temperature and pressure.

Diene

A hydrocarbon that contains two double bonds between carbon atoms.