Zachary holds 15 stocks in his portfolio. The portfolio's return last year was 11%, but one stock, RJH, doubled in value. What should Zachary do if he wants to be as diversified as he was at the beginning of the year?
A) Sell some of the RJH because it now constitutes a higher percentage of his holdings.
B) Sell the worst performing stock and use the proceeds to buy more RJH.
C) Wait for the price for RJH and the remaining stocks to rise so the proportions are reestablished.
D) Sell the RJH and buy a cheaper stock in the same industry.
Answer: A
Business
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