Which of the following are investor diversification problems?
A) Many employees hold mostly their employer's stocks as investments.
B) Many households hold relatively few individual stocks-the median is three.
C) Investors seem to prefer local firms thereby limiting diversification opportunities.
D) All of the options are investor diversification problems.

Question

Quizplus · Accepted Answer

All of the options listed are examples of investor diversification problems. Holding mostly employer's stock can lead to concentrated risk, holding few individual stocks limits diversification, and favoring local firms can also limit diversification opportunities.

Which of the Following Are Investor Diversification Problems