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True or False, Owning many different stocks is riskier than a large investment in a single...

True or False, Owning many different stocks is riskier than a large investment in a single company.

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Answer #1
False:
Reason: As per famous saying by Warren Buffet: Do not put all you eggs in one basket. Which means never invest all of your money in a single investment rather invest small amount of money in different investment. This is because if all amount invested in a single investment than any fluctuation in the return of that investment will affect the overall portfolio because portfolio will have a single investment. If on the other side, amount invested in multiple investment then even if an investment is lost due to market crash or any other reason, it will not largely impact other investments and our overall portfolio too. Which will lead to lower risk.
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