Which of the following individuals seems to have followed a diversification strategy? Someone who has purchased stock in:
A) lumber, paper, and furniture companies.
B) oil, telecommunications, and clothing companies.
C) silicon chips, computer, and cell phone companies.
D) cat food, dog food, and dog bone companies.

Question

Quizplus · Accepted Answer

The individual has purchased stock in companies from different industries, including oil, telecommunications, and clothing. This suggests that they have followed a diversification strategy to reduce risk.

Which of the Following Individuals Seems to Have Followed a Diversification