Question 1
If your portfolio currently consists of common stock in three companies, you could increase your diversification by all of the following
except
◦ selling one of the companies and putting the money in a bond.
◦ selling one of the companies and putting the money in a REIT.
◦ buying another stock.
◦ selling one of the companies and putting the money in the other two.
Question 2
If you are willing to accept only a moderate level of risk, you should invest in
◦ savings accounts.
◦ small-cap technology stocks.
◦ a stock mutual funds.
◦ Treasury bills.