Twenty-six-year-old Lisa Lamont became an investor one day after a friend explained that there was a much better way to make her money work for her than by letting it sit in a savings account earning a very low rate of interest.Lisa decided to withdraw $10,000 from her savings account and invest it in stocks.She wanted to invest it in such a way as to minimize her risk.Which one of the following strategies makes the most sense for a new investor like Lisa?
A) Invest all $10 000 in a small fast-growing social media company.
B) Invest $5000 in a gold mining company and $5000 in a silver mine.
C) Invest the $10 000 in four different home builders.
D) Invest $10 000 in ten different oil companies.
E) Invest $10 000 in a mutual fund.
Correct Answer:
Verified
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