Answer:
1. b. $3,400 in a mutual fund, $3,300 in bonds, and $3,300 in a land purchase
This is the most diversified because it involves equal or almost equal amounts put into separate instruments which means that a loss will be less likely to affect this portfolio because a loss affecting one instrument might not affect the rest
2. a. $10,000 in a mutual fund
This is the second most classified because Mutual funds invest in a variety of instruments so investing in Mutual funds is akin to investing in a variety of instruments.
3. c. $5,000 in one stock and $5,000 in another stock
This is the third most diversified because even though it involves investing in separate stocks, stock still generally move together in terms of performance so if one stock suffers a loss, there is a high chance the other will too.
4. d. $10,000 in one stock
This is not diversified at all because all the funds are on one instrument.
