Question
Which one of the followings violates the risk diversification rule in personal investment? Group of answer choices a. An employee of a public company should
Which one of the followings violates the risk diversification rule in personal investment?
Group of answer choices
a. An employee of a public company should invest less in his/her company's stock than a nonemployee.
b. A stock broker should invest less in stocks and more in other asset classes such as bonds, commodities, etc.
c. A young investor with stable job should invest more aggressively (i.e., investing more in high-risk assets such as stocks and less in low-risk assets such as bonds).
d. As an investor with stable job grows older, he/she needs to be more aggressive in his/her financial portfolio by tilting more toward high-risk assets such as stocks.
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