If Your Portfolio Currently Consists of Common Stock in Three

question 2

Multiple Choice

If your portfolio currently consists of common stock in three companies, you could increase your diversification by all of the following, except

• A) selling one of the companies and putting the money in a bond.
• B) selling one of the companies and putting the money in a REIT.
• C) buying another stock.
• D) selling one of the companies and putting the money in the other two.

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Definitions:

Affirming Consequent

A logical fallacy where one incorrectly infers the cause from an effect, specifically asserting that since the consequent is true, the antecedent must also be true.

Hypothetical Syllogism

A logical argument that has two premises followed by a conclusion, each of which is a conditional statement.

Categorical

Pertaining to categorization or the division of something into distinct categories.

Quantity Words

Words that express amounts of items or describe the extent of something, such as "many," "few," "several," etc.