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A Well-Diversified Portfolio Would Consist of a Variety of Investments

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A well-diversified portfolio would consist of a variety of investments and even cash for emergencies. The important thing is that the choice of investments spreads the risk. Some investments may perform very well in any one year while others may lag. Those performing well will balance out those that are underperforming.


Definitions:

Personality

The unique combination of characteristics and qualities that form an individual's distinct character, influencing thoughts, behaviors, and emotions.

Superiority Complex

A psychological defense mechanism in which a person’s feelings of superiority over others mask their own feelings of inadequacy or inferiority.

Exaggerated Opinion

A belief or judgment that is significantly overstated or represented more strongly than is justified by the facts.

Abilities

The various cognitive, physical, or emotional capacities that individuals possess, which enable them to perform different tasks and activities.

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