Which of the following stock portfolios offers the greatest diversification?
A) 3M and Raytheon
B) Adobe Systems and Sara Lee
C) Nucor and Wyeth
D) Ashland, Baker Hughes, Bemis, BMC Software, CA Inc., Century Telephone, Dean Foods, Dover Corp., Eastman Kodak, EQT Corp., Exxon Mobil, Ford Motor, General Dynamics, Genworth Financial, Google, Hasbro, Home Depot, Intuit, Johnson Controls, Kohl's, Legg Mason, Netapp, Pall Corp., Pfizer, QLogic, Ryder System, SLM Corp., Target, UPS, Viacom, Waters Corp., XL Capital, Yahoo, Zimmer Holdings

Question

Quizplus · Accepted Answer

The portfolio with 34 different stocks (Option D) offers the greatest diversification as it includes a variety of industries, such as technology, healthcare, consumer goods, energy, and finance. The other options only have two or three stocks, limiting diversification.

Which of the Following Stock Portfolios Offers the Greatest Diversification