Vernon wishes to pursue a stock-buying strategy where he buys the two best-performing and two worst-performing stocks in each sector of the U.S. economy. Which statement below identifies one strength and one weakness of this strategy?
Vernon's strategy is concentrated on high-risk companies and is concentrated in one country.
Vernon's strategy is diversified across company risks but is also diversified in many sectors.
Vernon's strategy diversifies across several sectors but is concentrated in one country.
Vernon's strategy is diversified across current valuations but is concentrated in one sector.