Problem:
Maria Durant works for Kanosh Company. Kanosh Company has organized a retirement investment fund for its employees. Maria can elect to have 10% of her salary invested in shares of Kanosh Company stock. Alternatively, Maria can elect to have that 10% of her salary invested in a fund containing the stocks of 40 different companies chosen from a variety of industries. Maria's investment advisor has advised her to invest the 10% of her salary in the stocks of 40 different companies rather than in shares of Kanosh Company, her employer. What is the most likely reason for this investment advice? Diversification Denomination Compensation Consolidation