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

Entire Course Link

https://plus.google.com/u/0/108200033792883877670/posts/dWT4sDYbQKM

 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:

·       

 

discount the present value of the income from the stocks.

·       

 

eliminate firm-specific risk though diversification.

·       

 

discount the future value of the income from the stocks.

·       

 

eliminate market risk though diversification.

 
Powered by