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:

Compass Sense

An ability observed in some animals, allowing them to navigate using Earth's magnetic field.

Map Sense

An inherent ability to understand and navigate the spatial environment, often used in reference to animals or humans who can orient themselves without explicit landmarks.

Polygyny

A mating system in which one male mates with multiple females, often found in animal societies.

Intersexual Selection

A form of natural selection in which individuals of one sex (usually females) choose mates from the opposite sex based on certain desirable traits, affecting the fitness of individuals.