the image shows gales investments during one year. what does the information demonstrate about gales…

the image shows gales investments during one year. what does the information demonstrate about gales investments? investments during one year gale starts with $1,000. gales investments: - savings account: $200, 1% return - mutual fund: $600, 7% return - stock: $200, -10% return value 1 year later: $1,024 profit: $24 if she had purchased only the stock and had not diversified her investments, she would have lost money. if she had diversified her investments further, her profits would have been considerably larger. if she had put money in her savings account only and had not diversified, her profits would grow. if she had diversified her investments further, she would have reduced her risk but made less of a profit.

the image shows gales investments during one year. what does the information demonstrate about gales investments? investments during one year gale starts with $1,000. gales investments: - savings account: $200, 1% return - mutual fund: $600, 7% return - stock: $200, -10% return value 1 year later: $1,024 profit: $24 if she had purchased only the stock and had not diversified her investments, she would have lost money. if she had diversified her investments further, her profits would have been considerably larger. if she had put money in her savings account only and had not diversified, her profits would grow. if she had diversified her investments further, she would have reduced her risk but made less of a profit.

Answer

Brief Explanations:

  1. Analyze each option:
    • For the stock - it has a negative return (- 10%). If she had only invested in stock, she would have lost money.
    • There is no evidence that further diversification would have led to considerably larger profits.
    • A savings account has a small return (1%). Just relying on it would not lead to significant profit growth.
    • There is no indication that further diversification would reduce risk and lead to less profit.

Answer:

If she had purchased only the stock and had not diversified her investments, she would have lost money.