Question
You are planning to buy stocks to diversify your portfolio. Company A is a luxury goods company. It reports an annual return of 60%. So
You are planning to buy stocks to diversify your portfolio. Company A is a luxury goods company. It reports an annual return of 60%. So far, this company has been reporting high profits. However, you are aware of a possibility of a lockdown in the country and a risk of stores closure. Company B is a small company that works on VR technology. Their annual return is 5%. Company B plans to introduce a service for VR events that is a promising opportunity for entering a new niche market. You need to decide which stocks to buy by discussing and applying concepts of risks, future scenarios, and opportunities.
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