which investor is making a common error?\no an employee of a popular hardware store who invests only in that…

which investor is making a common error?\no an employee of a popular hardware store who invests only in that company’s stock\no an employee of a popular software company who invests in many similar companies\no someone who sells the slumping stock while they are still able to make a profit based on what they paid\no someone who buys stock in both domestic and more risky international companies

which investor is making a common error?\no an employee of a popular hardware store who invests only in that company’s stock\no an employee of a popular software company who invests in many similar companies\no someone who sells the slumping stock while they are still able to make a profit based on what they paid\no someone who buys stock in both domestic and more risky international companies

Answer

Brief Explanations:

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 may suffer. The other options show more diversified or rational investment behaviors.

Answer:

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