If Two Portfolios Are Formed, One with Only One Stock

question 85

True/False

If two portfolios are formed, one with only one stock and another with 20 stocks, the portfolio with more stocks will always be the less risky.

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Definitions:

Multifactor Productivity

An indicator of economic efficiency that assesses the ratio of total goods and services output to the sum of inputs employed in their production.

Productivity Evaluation

The assessment of the efficiency of a worker or group of workers, generally measured by the amount of output produced relative to input used.

Industrial Plant

A complex of buildings and machinery designed for manufacturing or processing goods and materials.