When We Combine Stocks in a Portfolio, the Amount of Risk

question 29

True/False

When we combine stocks in a portfolio, the amount of risk that is eliminated depends on the degree to which the stocks face common risks and move together.

---

Definitions:

Property

Assets owned by an individual or entity, including both tangible items like real estate and cars, and intangible items like intellectual property.

Indefinite

Lacking clear definition or limits; vague or uncertain in duration or scope.

Property

Items or assets owned by individuals or entities, including real estate and personal possessions.

Presumed Revoked

The assumption that a legal document, like a will or license, is no longer valid or in effect without direct evidence.