If an Investor Buys Enough Stocks, He or She Can

question 19

True/False

If an investor buys enough stocks, he or she can, through diversification, eliminate all of the market risk inherent in owning stocks, but as a general rule it will not be possible to eliminate all diversifiable risk.

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Definitions:

Assignee

A person or entity to whom rights or interests are transferred by another, known as the assignor.

Delegator

A delegator is a person or entity that assigns duties or responsibilities to another, often in the context of a contractual or work-related relationship.

Non-assignable

A characteristic of a contract or right indicating that it cannot be transferred or delegated to another party without the consent of the original party or parties.

Contract Rights

Contract rights refer to the entitlements and obligations that are legally binding between parties as stipulated in a contract.