DIscussion due at 3pm pacific time on 6/24/2017, questions due on 6/25/17

Discussion:

On a recent trip home for summer break, your grandfather tells you that he has purchased the stock of two firms in the automobile industry: Toyota and Ford.  He goes on to discuss the merits of his decision and one of the points he makes is that he has avoided the risk of purchasing only one company’s stock by diversifying his holdings across two stocks. 

What do you think of his argument?  Be specific and describe to your grandfather what you have learned about portfolio diversification. 200 words

Question 1

Question 2

Question 3

Question 4