Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Maria Durant works for Kanosh Company. Kanosh Company has organized a retirement investment fund for its employees. Maria can elect to have 10% of her
Maria Durant works for Kanosh Company. Kanosh Company has organized a retirement investment fund for its employees. Maria can elect to have 10% of her salary invested in shares of Kanosh Company stock. Alternatively, Maria can elect to have that 10% of her salary invested in a fund containing the stocks of 40 different companies chosen from a variety of industries. Maria's investment advisor has advised her to invest the 10% of her salary in the stocks of 40 different companies rather than in shares of Kanosh Company, her employer. What is the most likely reason for this investment advice? Denomination Compensation Diversification Consolidation
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started