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-diversification

To answer the question step by step:

1. Identify the concept of over-diversification: Over-diversification occurs when an investor holds too many different investments, which can dilute the potential returns and make it harder to manage the portfolio effectively.

2. Analyze each option provided:

   • Harder to capture returns from sector-specific market news: This is a risk of over-diversification because having too many investments can mean missing out on significant gains from specific sectors.
   • More difficult to keep tabs on what is happening with each stock: This is also a risk of over-diversification 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 risk, not increase it. Having a single stock is usually riskier because it lacks diversification.
   • None of these are risks of over-diversification: This statement is incorrect because the first two options are indeed risks of over-diversification.

3. Determine the correct answer: Based on the analysis, the correct answer is "Losing money faster than if you just had 1 stock" because this is not a risk of over-diversification.

Therefore, the correct answer is: Losing money faster than if you just had 1 stock.