If Your Portfolio Consists of 100 Shares of Facebook, 100

question 92

Multiple Choice

If your portfolio consists of 100 shares of Facebook, 100 shares of Twitter, and 100 shares of Google, which of the following statements would be true of your portfolio?

• A) It is well diversified by industry.
• B) It is well diversified by type of asset.
• C) It has poor diversification.
• D) It has more diversification than is necessary.

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Definitions:

Transformations

Comprehensive changes or conversions in form, nature, or appearance, especially significant in scope or scale.

Short-term Perspective

A focus on immediate or near-future outcomes and goals, often at the expense of long-term planning.

Self-interest

The pursuit of personal gain or advantage, often considered a motivation in economics and psychology.

Proactive Behavior

Actions taken by individuals that are anticipatory, change-oriented, and self-initiated to influence their environment.