asked 40.8k views
4 votes
A well diversified portfolio needs about 3 to 5 stocks from different categories.

True

False

1 Answer

4 votes

Answer:

This is false.

Step-by-step explanation:

Diversification is An investment strategy that includes a mixture of a wide variety of investments from different categories within a portfolio.

A well diversified portfolio does not need 3 to 5 stocks from different categories instead A well-diversified portfolio needs about 20-25 stocks from various categories.

answered
User Mark Henry
by
8.4k points
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