What does it mean to "Diversify" your portfolio?

A. To hold more than 1 stock

B. For your stocks to not be all in the same area of the economy

C. To have a mix between stocks, mutual funds, or other securities

D. A and B

What is Capital Preservation?

A. To make sure you don't lose your initial investment

B. To make sure you keep the gains you make investing

C. When companies buy back stock

D. It is when you use Stop orders

Why would you want to diversify between sectors?

A. To make sure you get the maximum profit when one sector goes up

B. In case a sector-wide event causes all stocks to drop

C. Because every diversified portfolio has at least one energy stock and one technology stock

D. Because every portfolio should have ETFs

What is a good way to stay diversified?

A. Invest only in ETFs

B. Invest only in Mutual Funds

C. Re-balance your portfolio every 3 months

D. These are all good ways to stay diversified

What is a danger of over-diversification?

A. It is impossible to keep track of more than 10 stocks

B. If your investments are spread thin, it is hard to beat the market

C. Your portfolio has more risk than if you were less diversified

D. None of these are serious dangers