Which of the following are investor diversification problems?
A) Many employees hold mostly their employer's stocks as investments.
B) Many households hold relatively few individual stocks-the median is three.
C) Investors seem to prefer local firms thereby limiting diversification opportunities.
D) All of these choices are correct.

Question

Quizplus · Accepted Answer

All the options listed (A, B, and C) represent common diversification problems faced by investors. Holding a significant portion of an employer's stock, owning a small number of individual stocks, and preferring local firms all limit an investor's ability to diversify their investment portfolio effectively.

Which of the Following Are Investor Diversification Problems