Terry hamilton has just received $30,000 from an uncle who died and is trying to decide how to invest it. she has done some research has decided that about 30% of the money should go into large cap stocks, 20% into medium cap stocks, 15% into small cap stocks, 10% into bonds, 10% into foreign stock, and 15% into cash. she thinks that even if one area does not do that well, the rest will so that her overall return will be pretty good. what aspect of investing is terry most concerned about?

Question

Marlon Mullins

Business

24 October, 06:26

Terry hamilton has just received $30,000 from an uncle who died and is trying to decide how to invest it. she has done some research has decided that about 30% of the money should go into large cap stocks, 20% into medium cap stocks, 15% into small cap stocks, 10% into bonds, 10% into foreign stock, and 15% into cash. she thinks that even if one area does not do that well, the rest will so that her overall return will be pretty good. what aspect of investing is terry most concerned about?

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Alexia Carrillo · Answer 1

If she thinks that even if one area does not do that well and the rest will so that her overall return will be pretty good, then the aspect of investing that Terry is most concerned about is the diversification. The correct answer to the following given statement above is diversification.