SIE Exam Practice Question 171

Question: 171

Which of the following scenarios is the best example of diversification?

A. An investor buys 1,000 shares of ABC stock at $25 per share

B. An investor who invests $25,000 in one corporate bond

C. An investor who invests $25,000 in a large cap growth mutual fund

D. An investor who invests a total of $25,000 between stocks, bonds, and mutual funds.