Diversification Works in One's Portfolio Because Stock Returns in One's

question 199

True/False

Diversification works in one's portfolio because stock returns in one's portfolio do not always move in the same direction;as a result,the upswings and downturns in one's portfolio eliminate one another.

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Definitions:

Credit Policy

The guidelines that a company follows to determine the amount of credit to extend to customers or borrowers.

Conditional Sales Contract

An agreement where the sale of an asset is contingent upon certain conditions, typically involving the buyer making regular payments over time. If these conditions are met, ownership of the asset transfers from the seller to the buyer.

Title To The Goods

The legal right to own, possess, or sell a particular set of goods or merchandise, often involved in transactions and disputes.

Consumer Demand

The desire and willingness of consumers to purchase goods and services at given prices.