WHAT IS NOT A RISK OF OVER-DIVERSIFICATION? Harder to capture returns from sector-specific market news More difficult to keep tabs on what is happening with each stock Losing money faster than if you just had 1 stock None of these are risks of over-diversificationWHAT DOES IT MEAN

Sure, let's break down the question step by step:

1. Identify the question: The question is asking which of the given options is NOT a risk of over-diversification.

2. Understand over-diversification: Over-diversification occurs when an investor spreads their investments across too many assets, which can dilute potential returns and make it harder to manage the portfolio effectively.

3. Analyze each option:

   • Harder to capture returns from sector-specific market news: This is a risk because with too many investments, it becomes difficult to benefit from specific market movements.
   • More difficult to keep tabs on what is happening with each stock: This is also a risk because managing and monitoring a large number of stocks can be challenging.
   • Losing money faster than if you just had 1 stock: This is NOT typically a risk of over-diversification. In fact, diversification is generally used to reduce the risk of losing money quickly, as losses in one stock can be offset by gains in others.
   • None of these are risks of over-diversification: This option is incorrect because the first two points are indeed risks of over-diversification.

4. Conclusion: The correct answer is "Losing money faster than if you just had 1 stock" because it is not a risk of over-diversification.

So, the answer to the question is: Losing money faster than if you just had 1 stock.