Explain why an investor is usually better off if she holds a diversified portfolio rather than investing

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Explain why an investor is usually better off if she holds a diversified portfolio rather than investing all her resources in the stock of one company.

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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Managerial Economics and Organizational Architecture

ISBN: 978-0073375823

5th edition

Authors: James Brickley, Jerold Zimmerman, Clifford W. Smith Jr

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