An Individual Who Buys__________ Has a Poor Diversification Strategy

question 102

Multiple Choice

An individual who buys__________ has a poor diversification strategy.

• A) stock in gun manufacturing, ammunitions, and rifle companies
• B) stock in textbook publishing, tea and coffee production, and the technology sector
• C) T-bills, corporate bonds, and technology stocks
• D) government bonds, technology stocks, and agricultural stocks

---

Definitions:

Reservation Price

The highest price a consumer is willing to pay for a good or service, beyond which they would choose not to make a purchase.

Barbie's Preferences

A hypothetical concept referring to the assumed tastes or choices that the iconic doll character "Barbie" might have, based on her lifestyle and marketed products.

Good 1

A term used in economic models to represent the first of multiple goods considered in analysis, often with unspecified characteristics.

Price Elasticity

The degree to which the demand for an item is affected by fluctuations in its cost.