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:

Tariff Rules

Regulations and fixed duties or fees imposed by a government on imports or exports to control trade and raise revenue.

Common Carrier

An entity that offers its services to the general public for the transport of goods or people under the regulation of government agencies.

Liability

The legal responsibility for one's actions or inaction, which may result in financial compensation or legal penalties.

Declaration of Value

An official statement indicating the market value of property or goods, often required for insurance purposes or in the context of shipping and customs.