Which of the Following Are Investor Diversification Problems

question 29

Multiple Choice

Which of the following are investor diversification problems?

• A) Many employees hold mostly their employer's stocks as investments.
• B) Many households hold relatively few individual stocks-the median is three.
• C) Investors seem to prefer local firms thereby limiting diversification opportunities.
• D) All of the options are investor diversification problems.

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Definitions:

Franklin Roosevelt

The 32nd President of the United States, serving from 1933 to 1945, known for his New Deal programs during the Great Depression.

Nixon Administration

The period of U.S. governance under President Richard Nixon, notable for significant events like the Watergate scandal and Vietnam War policies.

Direct Payments

Cash transfers from governments or organizations to individuals, farmers, or businesses without any requirement for goods or services in return.

Federal Tax Receipts

The income received by the federal government from taxes, used to fund government spending and services.