A Well-Diversified Portfolio Would Consist of a Variety of Investments

question 342

True/False

A well-diversified portfolio would consist of a variety of investments and even cash for emergencies. The important thing is that the choice of investments spreads the risk. Some investments may perform very well in any one year while others may lag. Those performing well will balance out those that are underperforming.

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Definitions:

Abbreviation

A shortened form of a word or phrase, used typically to save space or for convenience.

Ratio

Shows the relative sizes of two or more values.

Quart

A unit of liquid volume equivalent to a quarter of a gallon, or approximately 0.946 liters.

Abbreviation

A shortened form of a word or phrase used to save space or time in written communication.