Explain the Changes Observed in the Risk of Investments When

question 53

Essay

Explain the changes observed in the risk of investments when an investor increases the number of stocks in her portfolio.

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Definitions:

Genes

The basic physical and functional units of heredity, made up of DNA, that determine the characteristics and traits inherited from one's parents.

Environments

The setting or circumstances in which a person, animal, or plant grows or functions.

Nature

the physical world collectively, including plants, animals, the landscape, and other features and products of the earth as opposed to humans or human creations.

Nurture

Nurture refers to the influence of environmental factors, including education, culture, and life experiences, on the development and behavior of an individual, in contrast to genetically inherited traits.