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Which of the following pairs of stocks seem to offer the most diversification benefits?

Option 1: Exxon
Option 2: Apple
Option 3: IBM
Option 4: Coca-Cola

User EdwinGuo
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1 Answer

3 votes

Final answer:

Exxon and Coca-Cola offer the most diversification benefits.

Step-by-step explanation:

The pair of stocks that offers the most diversification benefits would be Exxon and Coca-Cola. Diversification is the strategy of investing in a variety of assets to reduce risk. By having stocks from different industries, such as energy (Exxon) and consumer goods (Coca-Cola), you are spreading your risk and increasing the likelihood that some stocks will perform well even if others don't.

User Rvandoni
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