During the U.S. stock market collapse of 2007, Paula\'s financial advisor recomm
ID: 1198882 • Letter: D
Question
During the U.S. stock market collapse of 2007, Paula's financial advisor recommended that she invest in a number of pharmaceutical companies while their stock values were down considerably. He expected these companies to maintain high dividend yields, making them attractive to investors. If Paula follows her financial advisor's recommendations, she is
likely investing in an index fund.
diversifying her investment portfolio.
following momentum trading advice.
following fundamental trading advice
likely investing in an index fund.
diversifying her investment portfolio.
following momentum trading advice.
following fundamental trading advice
Explanation / Answer
following fundamental trading advice as the advice includes dividend yield expectations and dividend yield is one of the most important fundamental factor.