Start learning →

A student compares one stock with a whole portfolio. The reason to hold many rather than one favourite is to reduce:

ABroker licences
BMarket opening
CExtreme outcomes
DTrading hours
Answer & Solution
Correct answer: C. Extreme outcomes
1. A single company can fail. 2. Spreading holdings blunts that. 3. It reduces extreme outcomes. _Source: OpenStax Principles of Finance 2e, Chapter 15, How to Think about Investing._
Practise this question with Quill — Canadian Securities Course (CSC) →

Keep practising Risk and Return

Browse all Risk and Return questions for Canadian Securities Course (CSC), or explore more Investments topics.

Start a Risk and Return lesson →
Related questions
Risk and return bingoType the numberSort the investing wordsDiversifiable or notSlice the investing wordsRun the investing gatesPop the risk wordsCatch the return measures