Every Additional Stock Added to a Portfolio Reduces the Portfolio's

question 50

True/False

Every additional stock added to a portfolio reduces the portfolio's level of risk by an equal amount.

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Definitions:

Null Hypothesis

The default position that there is no relationship between two measured phenomena or no association among groups.

Alternative Hypothesis

In hypothesis testing, the hypothesis that contradicts the null hypothesis, usually suggesting that a new theory or intervention has an effect.

P-value

A statistical measure that indicates the probability of the observed data, or more extreme, assuming that the null hypothesis is true.

Null Hypothesis

A statement or hypothesis that assumes no statistical significance exists in a set of given observations, serving as the default assumption to be tested.