We Will Generally Find That the Beta of a Diversified

question 30

True/False

We will generally find that the beta of a diversified portfolio is more stable over time than the beta of a single security.

---

Definitions:

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, known for his theories of the unconscious mind.

Style Of Life

Style of Life, a concept introduced by Alfred Adler, refers to an individual's unique way of achieving superiority, coping with life's challenges, and striving towards personal goals.

Adler

Alfred Adler, an Austrian medical doctor, psychotherapist, and founder of the school of individual psychology.

Childhood Inferiorities

Feelings of inadequacy believed to begin in childhood, which can influence adult behavior and personality, as per theories in psychology, notably by Alfred Adler.