Portfolio Diversification Is the Practice of Selecting a Collection of Investments

question 66

True/False

Portfolio diversification is the practice of selecting a collection of investments that have dissimilar risk-return characteristics.

---

Definitions:

Learned

Acquired or developed through experience or education.

Behave Aggressively

Exhibiting actions or behaviors that intend to harm or intimidate others physically or psychologically.

Thirst Level

An individual's subjective feeling of needing to drink fluids, often influenced by physiological signals of dehydration.

Drive-Reduction Theory

A theory of motivation suggesting that the motivation arises from biological needs that demand satisfaction, driving individuals to reduce the state of tension through specific behaviors.