Problem:
We assumed that you have $100,000 in your bank account that can be invested. Suppose you invested your $100,000 in the shares of the Nike Inc. (NKE) (https://www.nikebiz.com/; https://money.cnn.com/quote/quote.html?symb=NKE). Based on your current situation, your portfolio cannot be considered a "diversified portfolio" because you invested all your money in the shares of the Tiffany & Company. In fact, undiversified portfolio is very risky and you may end up losing your investment. Therefore, it is strongly recommended that you diversify your investment portfolio by adding different types of securities.
Read the information in the background material, look for more information, and then write a 2 to 3 page paper answering the following questions:
How important is it for you to diversify your investment portfolio?
How would you diversify your investment portfolio?
Explain your reasoning.