Index Fund Investors Should Purchase at Least Two Funds with the Same

question 4

True/False

Index fund investors should purchase at least two funds with the same objective to assure proper diversification.

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Definitions:

George Miller

A psychologist best known for his work in cognitive psychology and for proposing the theory that the short-term memory could hold 7±2 items.

Units of Information

Basic measurable elements that represent data or knowledge, often used in the field of information theory to quantify how much information is contained in a message.

Classic Research

Foundational studies or experiments that have significantly contributed to the understanding and development of a field of study.

Sensory Memory

The shortest-term element of memory, which allows individuals to retain impressions of sensory information after the original stimulus has ceased.