What Is the Diversification Achieved by an Investor If He

question 52

Essay

What is the diversification achieved by an investor if he invests in Dell, IBM, and Microsoft?

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Definitions:

Unrealized Holding

Refers to the increase or decrease in the value of an investment that has not yet been sold by the holder.

Realized Gains

Profits made from selling an asset at a higher price than its purchase cost, which has been actually earned and can be reported in financial statements.

Available-for-Sale Securities

Financial assets that are held for sale in the short term and which can be converted into cash, generally classified as current assets.

Fair Values

The estimated market value of an asset or liability, based on current market prices.