The Main Benefit of Diversification Is That It Reduces the Exposure

question 73

True/False

The main benefit of diversification is that it reduces the exposure of your investments to the adverse effects of any individual stock.

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Definitions:

Ethnic Groups

Communities or populations sharing common cultural traditions, ancestry, language, or history.

Similar Interests

Shared hobbies, preferences, or passions between individuals, often enhancing compatibility and social connection.

Average Features

The common characteristics or attributes derived from aggregating individual data points or observations, typically used in facial recognition and psychology.

Attractive

Having qualities or features that arouse interest, desire, or favorably appeal to the senses, especially sight.