In Chapter 7, we showed that diversification reduces the risk associated with a portfolio of investments. (Most

Question:

In Chapter 7, we showed that diversification reduces the risk associated with a portfolio of investments. (Most experts advise their clients that the portfolios should contain between 20 and 30 stocks scattered in different industries.) Do investors understand this concept? To help answer this question, a random sample of investors’ portfolios was sampled. This survey was a duplicate of the one done 5 years earlier. The number of stocks in each sampled portfolio was recorded. Do these data allow us to infer that investors’ portfolios are becoming more diverse?

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...