Why Is Too Much Diversification Considered A Negative Thing When Dealing In A Mutual Funds?

(Correct Answer Below)

Why Is Too Much Diversification Considered A Negative Thing When Dealing In A Mutual Funds?

:
Front

Advertisement

b. When there is too much diversification in a mutual fund, great success in a single stock doesn't make much of a difference in the overall progress of the fund.

About the flashcard:

This flashcard is meant to be used for studying, quizzing and learning new information. Many scouting web questions are common questions that are typically seen in the classroom, for homework or on quizzes and tests. Flashcards vary depending on the topic, questions and age group. The cards are meant to be seen as a digital flashcard as they appear double sided, or rather hide the answer giving you the opportunity to think about the question at hand and answer it in your head or on a sheet before revealing the correct answer to yourself or studying partner. Some questions will include multiple choice options to show you the options involved and other questions will just have the questions and corrects answers. Simply reveal the answer when you are ready to check your work. Absolutely no cheating is acceptable.