FINRA-SERIES-6 practice

Q1 Single choice

Your cousin has recently attended a seminar on the benefits of diversification. Based on what he learned, he decided to sell the shares he had in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks. Based on this information, you can tell him:

A
that he's wise beyond his years.
B
that he's less diversified than he was before.
C
that he's less diversified than he was before, but can expect a higher rate of return.
D
none of the above.