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9. Diversification decreases the amount of risk in your portfolio, relative to the amount of return. True False 10. Very often, the stock price of

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9. Diversification decreases the amount of risk in your portfolio, relative to the amount of return. True False 10. Very often, the stock price of a firm reporting earnings that are only a few cents below their previous estimates go down by substantial amounts. This is because even a few cents can make a huge difference when multiplied over millions of shares. True False

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