Brinley holds stock in large high-tech companies in his portfolio. The best way for Brinley to diversify his risk would be to buy

Question

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Option C would be the best way for Brinley to diversify his risk because it would add stocks or bonds from small and medium-sized companies to his portfolio, which have different risk profiles than the large high-tech companies he already owns. This would help reduce the concentration risk in his portfolio and spread his investments across a wider range of companies and industries. Options A and D would not help diversify his risk because he would be adding more of the same type of investments to his portfolio. Option B would provide some diversification, but it would still be within the same industry and may not provide enough diversification to reduce risk.

Brinley Holds Stock in Large High-Tech Companies in His Portfolio