Belinda just inherited $10,000 from her grandfather, and she wants to invest it in the stock market. Rather than investing the entire $10,000 in the stock of one company, she decides to buy $2,000 of stock in each of five different companies, all in different sectors of the economy. Belinda's investment strategy is referred to as .

The strategy is called sector-wise diversification.

Explanation:

This is an excellent way to diversify and distribute the risk as if we only invest in companies in one sector of the economy, if that sector is affected by poor economic conditions, the companies in that sector will under perform and the entire portfolio will go down in value.

However, if we diversify the risk among different sectors such as agriculture, consumer goods, banks and financial services, diversified holdings, food and beverages, etc.. even if a sector falls under difficult times, the rest of the portfolio will only be slightly affected,

was my answer wrong?

the answer would be voluntary exchange -

"the act of buyers and sellers freely and willingly engaging in market transactions. moreover, transactions are made in such a way that both the buyer and the seller are better off after the exchange than before it occurred."

hope this : )

-shy