If an investor wishes to better diversify her investment portfolio,which consists of the common stocks of many of the firms that are in the Dow Jones Industrial Average,she probably should invest in some companies that are in those industries that are classified as cyclical.

Question

Quizplus · Accepted Answer

Investing in cyclical industries, which are sensitive to economic cycles, does not necessarily provide diversification if the portfolio already consists of stocks from the Dow Jones Industrial Average, which may include cyclical stocks. Diversification typically involves spreading investments across different asset classes or sectors that do not move in tandem.

If an Investor Wishes to Better Diversify Her Investment Portfolio,which