As an investor, would you agree to the statement "put all your eggs in one basket?" Substantiate your answer
No. Perhaps the first rule of safe investing is: Always diversify?never put all your eggs in one basket. A person or an organization's holdings of securities from several different corporations is called a portfolio of investments. A portfolio tends to be far less risky than any of the individual securities it contains because of the benefits of portfolio diversification.
You might also like to view...
Give two disadvantages of using an expenditure-based fiscal policy over a taxation-based fiscal policy
What will be an ideal response?
If a 6% decrease in price for a good results in a 2% increase in quantity demanded, the price elasticity of demand is
a. 0.02. b. 0.33. c. 3. d. 4.
Which is an expansionary money policy?
a. Decrease the money supply to shift the aggregate demand curve leftward b. Increase the money supply to shift the aggregate demand curve leftward c. Increase the money supply to shift the aggregate supply curve leftward d. Increase the money supply to shift the aggregate demand curve rightward
If each company that made up the Dow Jones Industrial Average increased the number of their shares outstanding by 10%, but the share prices did not change, the value of the index would:
A. decrease since there are more shares outstanding. B. increase by 10%. C. not change. D. increase, but by less than 10%.