Question

which investor is making a common error?
an employee of a popular hardware store who invests only in that company’s stock
an employee of a popular software company who invests in many similar companies
someone who sells the slumping stock while they are still able to make a profit based on what they paid
someone who buys stock in both domestic and more risky international companies

Explanation:

Diversification is key in investing. Investing only in one's employer - company stock exposes an investor to high - concentration risk. If the company faces difficulties, the investor's entire investment portfolio and job may be at risk simultaneously. The other options show more diversified or rational investment strategies.

Answer:

an employee of a popular hardware store who invests only in that company’s stock