Question

What are some diversification options?

Precious metals

International and emerging markets

Stocks across market caps

All of the above

What can be learned from Warren Buffet's approach to investing?

Skip the research

Sell, sell, sell

Use a buy and hold strategy

Pay attention to rumors and pure market price indicators

What are some diversification options?

Precious metals

International and emerging markets

Stocks across market caps

All of the above

Answer 1

1. Some of the diversification options will be all of the above because precious metal will also be providing a diversification opportunity along with international and emerging market stocks and stocks across different market capitalisation will also be providing diversification opportunities.

basically diversification is about investing in two different set of stocks in order to eliminate the firm specific risk.

Correct answer will be option (D) all of the above.

2. Warren Buffett approach of investing is about buying and holding the stocks for a longer period of time like he has held Coca-Cola.

Other options are false because it is not about skipping the research or paying attention to the rumours.

Correct answer will be option (C) use of buy and hold strategy.

3.diversification options will be all of the above options because it is about investing into different set of stocks like precious metals and stocks across market caps and international and emerging markets.

Correct answer will be option (d) all of the above.