Amelia decides to buy 10 shares each of 5 companies instead of investing in 50 shares of a big

Amelia decides to buy 10 shares each of 5 companies instead of investing in 50 shares of a big

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 Amelia decides to buy 10 shares each of 5 companies instead of investing in 50 shares of a big company. This is an attempt to:

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discount the present value of the income from the stocks.

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eliminate firm-specific risk though diversification.

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discount the future value of the income from the stocks.

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eliminate market risk though diversification.

 
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