An individual who buys__________ has a poor diversification strategy.
A) stock in gun manufacturing, ammunitions, and rifle companies
B) stock in textbook publishing, tea and coffee production, and the technology sector
C) T-bills, corporate bonds, and technology stocks
D) government bonds, technology stocks, and agricultural stocks

Question

Quizplus · Accepted Answer

Stock in gun manufacturing, ammunitions, and rifle companies are all within the same industry and not diversified across multiple sectors. This increases the risk of losing money if that particular industry experiences difficulties.

An Individual Who Buys__________ Has a Poor Diversification Strategy