ABSTRACT
If you told me when I was 14 years old that it was better to buy a single stock rather than a stock mutual fund in order to minimize riskiness, I would tell you that you were wrong (Rephrasing of Question 3 in the 2009 Financial Capability Study; Lusardi and Mitchell, 2011). e best way to minimize risk is to diversify your holdings. Unfortunately, only about half of Americans will answer this question correctly, and 38.7% of Americans will answer “don’t know” (Lusardi and Mitchell, 2011). is is likely because half of Americans do not have fathers such as mine.
