Question

You have stocks in a company producing corn in Nebraska. It is possible that in the next months two shocks will hit the economy: one is a possible negative shock to consumer confidence in Nebraska that might lead to businesses facing difficulties; the other one is a possible tax increase to agricultural producers in the U.S.

How can you best diversify the risk of these two threats?

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By additionally buying shares of another corn producer in Arizona.

By additionally buying shares of a wheat producer in Nebraska.

By additionally buying shares of a car producer in Arizona.Question 2 1 pts You have stocks in a company producing corn in Nebraska. It is possible that in the next months two shocks w

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Answer #1

How can you best diversify the risk of these two threats?

By additionally buying shares of a car producer in Arizona.

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