Conventional Wisdom Has Long Held That Diversification of a Stock

question 19

Essay

Conventional wisdom has long held that diversification of a stock portfolio should be across industries. Does the correlation coefficient indirectly recommend the same thing?

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Definitions:

Cellular Phone Service

A service that allows mobile phone users to make and receive calls and access data over a radio frequency link while moving within a service area.

Technological Improvements

Enhancements or advancements in technology that increase productivity, efficiency, or the overall quality of goods and services.

Subscribers

Individuals or organizations that agree to receive products or services on a regular basis from a provider, often through a paid subscription.

Consumer Income

The total earnings of consumers, affecting their ability to purchase goods and services.