Question

If you wish to create a portfolio of stocks, what is the required minimum number of stocks?

Multiple choice question.

You must invest in stocks of at least 10 corporations.


You must invest in stocks of more than one corporation.


You must invest in at least 2 stocks of 1 corporation.


You must invest in the stocks of at least 30 corporations.

Answers

Answered by GPT-4o mini
The correct answer is:

**You must invest in stocks of more than one corporation.**

This option reflects the principle of diversification in investing, which aims to reduce risk by spreading investments across multiple corporations. Investing in more than one corporation helps mitigate the impact of poor performance from any single stock.
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