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If an investor holds a concentrated stock position, which of the following is NOT a way to diversify the portfolio? A purchase of a long
If an investor holds a concentrated stock position, which of the following is NOT a way to diversify the portfolio? A purchase of a longdated put option on the concentrated stock holding combined with the sale of a longdated call option. Selling small portions of the concentrated holding slowly over time and reinvest the money to purchase a more diversified portfolio. Use margin trading.
If an investor holds a concentrated stock position, which of the following is NOT a way to diversify the portfolio?
A purchase of a longdated put option on the concentrated stock holding combined with the sale of a longdated call option.
Selling small portions of the concentrated holding slowly over time and reinvest the money to purchase a more diversified portfolio.
Use margin trading.
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