Diversification Will Normally Reduce the Riskiness of a Portfolio of Stocks

question 37

True/False

Diversification will normally reduce the riskiness of a portfolio of stocks.

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Definitions:

Law Of Supply

A fundamental principle stating that, all else equal, an increase in price results in an increase in quantity supplied.

Upward Slope

A graphical representation in which a line or curve moves higher as it progresses from left to right, indicating an increase in the variable being measured.

Price Of Gasoline

The amount of money charged per unit volume of gasoline, affected by factors such as crude oil prices, taxes, supply, and demand.

Price Of Oil

The cost per barrel of crude oil as determined by global markets.