Investment risk through asset allocation

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Brendan is ready to retire after having worked years at XYZ Company as a manager in finance. He has done much reading on investing and understands risk. You have told him that you are taking a Personal Finance course, so he has decided to test you. His questions are:

a) What does it mean to reduce your investment risk through asset allocation?

b) What are two strategies for diversifying stocks?

c) Last week, while Brendan was in the elevator, he overheard the president of his company talking about how their company is going to be driven into bankruptcy as a result of severe financial problems. Brendan knows that you own shares in XYZ Company and counsels you to sell them right away. You let Brendan know that by sharing this warning, he could be found guilty of ______________________.

Reference no: EM132273037

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