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A woman owns 42 shares of stock in the Mandra Corporation. She wants to invest more...

A woman owns 42 shares of stock in the Mandra Corporation. She wants to invest more money in the stock market. Statistically speaking, which of the following investments will reduce her risk (variance) the most

Math   Statistics-And-Probability   
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Answer #1

Athough the options aren't visible here, here' the answer. Please write back to me with details I will be help you out with.

1. The investment which will reduce risk ( variance) the most will be:

i .Bonds/government securities , which are risk free

ii. Fixed deposits, which come under the fixed income category

iii. Investment is Gold is supposed to a good risk diversification

Any further investment in Mandra Corp. will not diversify the risk and hence wil lretain the same amount of risk

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