The Benefits of Diversification Occur as Long as the Investments

question 60

True/False

The benefits of diversification occur as long as the investments in a portfolio are not perfectly positively correlated.

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Definitions:

Goal-Directed

Behaviors or actions that are initiated and guided by objectives or desired outcomes, aimed at achieving specific goals.

Observing Others' Behavior

The process of watching the actions and reactions of individuals or groups in order to learn and understand social norms, skills, or information.

Punishment

An action that is taken to reduce the likelihood of a behavior recurring by applying an adverse stimulus or removing a positive stimulus following the behavior.

Reinforcement

In psychology, a process by which a stimulus or event strengthens or increases the probability of a response or behavior it follows.