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Asset Allocation and Diversification Are Not Related Concepts

question 92

True/False

Asset allocation and diversification are not related concepts.


Definitions:

Availability Heuristic

A cognitive shortcut based on the first examples that surface in one's thoughts when considering a particular topic, idea, strategy, or choice.

Confirmation Bias

The tendency to interpret new evidence as confirmation of one's existing beliefs or theories.

Multitasking

The performance of multiple tasks simultaneously by an individual or machine.

Framing Effect

The influence on decision making caused by the way information is presented, rather than by the information itself.

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