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Paul Has Purchased Individual Stocks in Five Companies

Question 60

Multiple Choice

Paul has purchased individual stocks in five companies. One company is in the telecommunications industry, one is in the oil and gas industry, one is in the transportation industry, one is in the pharmaceutical industry, and one is in the technology industry. This is an example of:


A) nondiversification.
B) diversification.
C) an exchanged-traded fund.
D) an index fund.

Correct Answer:

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