During the U.S. stock market collapse of 2007, Paula\'s financial advisor recomm

Question

During the U.S. stock market collapse of 2007, Paula's financial advisor recommended that she invest in a number of pharmaceutical companies while their stock values were down considerably. He expected these companies to maintain high dividend yields, making them attractive to investors. If Paula follows her financial advisor's recommendations, she is  

likely investing in an index fund.

diversifying her investment portfolio.

following momentum trading advice.

following fundamental trading advice

likely investing in an index fund.

diversifying her investment portfolio.

following momentum trading advice.

following fundamental trading advice

Explanation / Answer

following fundamental trading advice as the advice includes dividend yield expectations and dividend yield is one of the most important fundamental factor.

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