if all of the funds are invested in a single stock.
if the funds are invested for a relatively short period of time.
Buying shares of corporate stock tends to be risky when
the stock of a single corporation is purchased.
the stock may have to be sold within a few months.
all stocks bought are in the same industry.
all of the above are true.
If an investor’s primary stock holding is currently Exxon Mobil, the purchase of which of the following stocks would provide the investor with the largest reduction in risk?
Shell Oil Corporation
Which of the following has made it possible for investors without any special business skills to benefit from the ownership of corporate America?
the availability of mutual funds, which make it possible for even small investors to purchase a diverse stock portfolio at a low cost