If your investment money is evenly divided among stocks in your investment portfolio, which of these four stock portfolios would suffer the most from an Adobe Systems bankruptcy?
A) Adobe Systems
B) Adobe Systems and Best Buy
C) Adobe Systems, Nucor, and Wyeth
D) Adobe Systems, Ashland, Baker Hughes, Bemis, BMC Software, CA Inc., Century Telephone, Dean Foods, Dover Corp., Eastman Kodak, EQT Corp., and Exxon Mobil

Question

Quizplus · Accepted Answer

The portfolio that only contains Adobe Systems stocks would suffer the most from an Adobe Systems bankruptcy as it would result in the loss of the entire investment in that stock. The other portfolios have a greater diversification of stocks and therefore the impact of an Adobe Systems bankruptcy would not be as severe.

If Your Investment Money Is Evenly Divided Among Stocks in Your