A Portfolio of Shares Where Each Share Has a Large

question 54

True/False

A portfolio of shares where each share has a large component of independent risk benefits when such shares are held in a portfolio, because the independent risks are averaged out. This is also referred to as 'diversification of risks'.

---

Definitions:

Positive Punishment

A concept in behavior psychology where an unpleasant stimulus is added following a behavior to decrease the likelihood of that behavior occurring in the future.

Negative Punishment

A behavior modification technique where a desirable stimulus is removed after the occurrence of an unwanted behavior, aiming to decrease that behavior's future occurrences.

Aversive Stimulus

A negative or unpleasant stimulus that is used to induce a change in behavior through aversion therapy or conditioning.

Positive Punishment

A behavioral concept where introducing an undesirable consequence after an action decreases the likelihood of that action being repeated.