If stock prices overall decline in a given month, a well-diversified portfolio will likely experience
A) a decline.
B) no change.
C) a gain.
D) an unrelated change.

Question

Quizplus · Accepted Answer

A well-diversified portfolio is designed to mitigate risk, but it is still subject to market trends. If stock prices decline overall, it's likely that the portfolio, being diversified across various stocks, will also experience a decline, reflecting the general market downturn.

If Stock Prices Overall Decline in a Given Month, a Well-Diversified