After careful analysis of the data, you conclude that firms which hire CC graduates earn abnormal returns of $+4\%$ per year over the ensuing few years. As a student of behavioral finance, you believe this is mispricing and represents actual profit. You decide to invest your nest egg of $$50,000$ based on this conclusion and have two options.

Option $1$: invest all $$50,000$ in one company that has just hired a Carlson graduate

Option $2$: invest $$5,000$ in each of $10$ different companies that just hired a Carlson graduate

Which option is preferable? $($Approximately three sentences total$)$

Answer: