If an Investor Buys Enough Stocks,he or She Can,through Diversification,eliminate

question 37

True/False

If an investor buys enough stocks,he or she can,through diversification,eliminate all of the market risk inherent in owning stocks,but as a general rule it will not be possible to eliminate all company-specific risk.

---

Definitions:

Demand Management

The process of forecasting and managing customer demand to optimize supply chain and production processes.

Supply Chain

The entire network of organizations involved in creating and delivering a product or service, from raw materials to the end user.

Marginal Subcontracting Cost

The additional cost incurred by a company when it chooses to outsource work or production to a subcontractor instead of handling it internally.

Layoff Cost

Expenses incurred by a company when it dismisses employees, including severance pay, benefits continuation, and other related costs.