Which of the following individuals seems to have followed adiversification strategy?
Someone who has purchased stock in:
A)lumber, paper, and furniture companies.
B)oil, telecommunications, and clothing companies.(True Answer )Correct
C)silicon chips, computer, and cell phone companies.
D)cat food, dog food, and dog bone companies.

Question

Quizplus · Accepted Answer

Purchasing stock in companies from different industries, such as oil, telecommunications, and clothing, represents a diversification strategy. This is because if one industry performs poorly, the other industries may perform well, reducing overall risk. The other choices (A, C, and D) represent investments in companies within the same industry or related industries, which increases overall risk.

Which of the Following Individuals Seems to Have Followed Adiversification