If You Build a Large Enough Portfolio, You Can Diversify

question 18

True/False

If you build a large enough portfolio, you can diversify away all the risks of a portfolio.

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Definitions:

Transcendence

The act of going beyond the limits of ordinary experience, often in a spiritual or existential sense.

Metamotives

Metamotives refer to higher-order motivations that transcend basic physiological needs, often related to self-actualization and the pursuit of meaning.

Free Will

The concept that humans have the capability to make choices independently of any preexisting conditions or determinants.

Determinism

The philosophical belief that all events, including human actions, are ultimately determined by causes external to the will.