Portfolio Diversification Can Eliminate 100% of Risk

question 17

True/False

Portfolio diversification can eliminate 100% of risk.

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Definitions:

Francis Galton

A 19th-century English polymath who contributed to fields like statistics, psychology, and anthropology, and is known for his research in eugenics and psychometrics.

Mary Calkins

An early 20th-century psychologist and philosopher known for her work in memory and the first female president of the American Psychological Association (APA).

Unconscious Processes

Mental processes that occur without awareness or intention, influencing thoughts, feelings, and behaviors.

The Mind

The essence of consciousness and thought, comprising cognitive functions such as perception, memory, and judgment, which enable understanding and interaction with the world.