Increasing the Number of Securities in a Portfolio Reduces the Unsystematic

question 28

True/False

Increasing the number of securities in a portfolio reduces the unsystematic risk but not the systematic risk.

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Definitions:

Distribution

In statistics, the way in which values are spread out or distributed across a range.

Panic Disorder

Panic disorder is a mental health condition characterized by sudden and repeated episodes of intense fear or discomfort, along with physical symptoms like rapid heartbeat and dizziness.

Intense Anxiety

A heightened state of fear, worry, or unease that is stronger and more consuming than typical anxiety.

Recurrent

Occurring repeatedly or habitually, typically referring to events, phenomena, or conditions.