Question: Diversification is an important concept in characterizing risk and return. All of the following are examples of investors taking advantage of diversification EXCEPT John decides

Diversification is an important concept in characterizing risk and return. All of the following are examples of investors taking advantage of diversification EXCEPT

John decides to invest 50% of his money in stocks and 50% in bonds

Jane decides to invest in five different company stocks: Amazon, Google, Tesla, Facebook (Meta) and Microsoft. She will put 20% of her money into each company stock.

Jack has studied the recent negative return in Netflix (NFLX) stock, and decides to invest all his money in this stock because he thinks it will go back up.

Jill has decided to invest all her money in a single mutual fund that tracks the S&P 500 index

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