Question

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.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

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.
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
It is riskier to buy an option than to write an option. True or false?
It is riskier to buy an option than to write an option. True or false?
Smaller company stocks (by market cap) are less risky than large company stocks because they are...
Smaller company stocks (by market cap) are less risky than large company stocks because they are traded less and are therefore less subject to general market volatility True False
true or false as the correlation between two stocks changes , the shape of investment opportunity...
true or false as the correlation between two stocks changes , the shape of investment opportunity set will not change
True or False. Macrovicariant speciation is speciation that occurs when a single species is split into...
True or False. Macrovicariant speciation is speciation that occurs when a single species is split into two or more large subgroups that are found in different places. A full explanation would be tremendous, Thank you!
1(a). (TRUE or FALSE?) Eurobonds are preferred stocks that are denominated in British Pounds and hold...
1(a). (TRUE or FALSE?) Eurobonds are preferred stocks that are denominated in British Pounds and hold by the U.S. government. 1(b). (TRUE or FALSE?) An domestic bond is a bond sold in countries other than where the corporate headquarters of the issuing company is located.
True or False (1) Everything else equal, bond price will be higher if investors are demanding...
True or False (1) Everything else equal, bond price will be higher if investors are demanding a higher return rate. (2) In general, investors believe bonds are riskier than stocks. (3) Typically, preferred stocks have voting rights, just like common stocks.
Which of the following is true? secured bonds are riskier than unsecured bonds given all other...
Which of the following is true? secured bonds are riskier than unsecured bonds given all other aspects are the same. bonds with sinking funds are riskier than bonds without sinking funds given all other aspects are the same. Callable bonds are riskier than non-callable bonds given all other aspects are the same. bonds with sinking funds are riskier than bonds without sinking funds given all other aspects are the same.
Fill in the blanks: _____ investment funds are riskier than _____ funds, but are generally less...
Fill in the blanks: _____ investment funds are riskier than _____ funds, but are generally less risky than _____ funds. ____ A) Balanced; equity; specialty B) Mortgage; money market; bond C) Bond; balanced; mortgage D) Specialty; index; balanced
Do you think that the following statement is true or false? Buying a single company stock...
Do you think that the following statement is true or false? Buying a single company stock usually provides a safer return than a diversified stock portfolio. True. False. There is insufficient information to answer the question.
An investment project is accepted if its NPV is less than its WACC. True False
An investment project is accepted if its NPV is less than its WACC. True False
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT