If your portfolio consists of 100 shares of Facebook, 100 shares of Twitter, and 100 shares of Google, which of the following statements would be true of your portfolio?
A) It is well diversified by industry.
B) It is well diversified by type of asset.
C) It has poor diversification.
D) It has more diversification than is necessary.

Question

Quizplus · Accepted Answer

All the shares in the portfolio are from companies within the technology sector, specifically social media and internet services, indicating a lack of diversification across different industries or asset types.

If Your Portfolio Consists of 100 Shares of Facebook, 100