Final answer:
To remain financially healthy, a diversified firm must invest in stocks or bonds from a wide range of companies to minimize risk and counterbalance extreme fluctuations in value.
Step-by-step explanation:
A diversified firm must buy stocks or bonds from a wide range of companies to remain financially healthy. Diversification helps minimize the risk of unfavorable market conditions or poor managerial decisions affecting the firm's overall financial standing. By investing in a variety of companies, the firm can mitigate extreme increases or decreases in the value of its investments.