Most Nondiversifiable Risk Can Be Eliminated by Creating a Portfolio

question 99

True/False

Most nondiversifiable risk can be eliminated by creating a portfolio of around 30 stocks.

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Definitions:

Disaggregated Financial Data

Refers to financial information that is broken down into smaller components to provide detailed insight into the financial condition and performance of a company.

Risk of Investing

The potential for an investor to experience losses due to factors affecting overall financial market performance or specific asset classes.

Major Customers

Refers to clients who contribute significantly to a company's revenue, often making up a large portion of sales.

Auditor Opinions

Formal statements made by an auditor based on an audit of a company's financial statements, indicating the level of reliability of the financial information.