How would you go about reducing your risk exposure? Ex. How many different stocks of what types?

Assume that both companies are in the same business and compete directly with each other. BASED ON YOUR FINANCIAL ANALYSIS OF THIS VERY LIMITED INFORMATION, IN WHICH COMPANY WOULD YOU PREFER TO INVEST?

EXPLAIN. Think critically, as if you were investing your own, hard-earned money. Be sure to address how each of the calculations affects your analysis. Also, explain how the sheer size difference and relative amounts of debt affect your decision.

Response should be at least 1 – 2 complete paragraphs including in-depth content that demonstrates knowledge of the subject matter. Be sure to use correct grammar and spelling.

• If you had $50,000 to invest in the stock market, how would you go about reducing your risk exposure? Ex. How many different stocks of what types?

• Explain.