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7. Receivables and Investments
Introduction to Investments in Securities
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According to financial theory, approximately how many different stocks from various categories are generally needed to create a well-diversified investment portfolio?
A
20-25 stocks
B
100 or more stocks
C
5-10 stocks
D
50-60 stocks
검증된 단계별 안내1
Understand the concept of diversification: Diversification is a risk management strategy that involves spreading investments across various financial assets, industries, and other categories to reduce exposure to any single asset or risk.
Learn why diversification is important: A well-diversified portfolio minimizes the impact of poor performance from any single stock or sector, thereby reducing overall portfolio risk.
Explore the general guideline for diversification: Financial theory suggests that holding approximately 20-25 stocks from various categories is typically sufficient to achieve a well-diversified portfolio. This number balances the benefits of diversification with the costs of managing a larger portfolio.
Consider the categories of stocks: To diversify effectively, stocks should be selected from different industries, sectors, and geographic regions to ensure exposure to a variety of market conditions.
Review the options provided: Compare the suggested number of stocks (20-25) with the other options (100 or more, 5-10, 50-60) to identify the correct range for a well-diversified portfolio based on financial theory.
