If an individual owns stock and acquires bonds issued by the

If an individual owns stock and acquires bonds issued by the same company, does the purchase diversify the investor’s portfolio?

Solution

No, diversification means by industry, by company, by country, but on a narrower scale, bonds would represent some small amount of diversification. Not enough in my view to qualify as being\'diversified\'. [remember the though the yield may be different, the overall value trend will be same so the risk will follow a similar trend for both and thus not a diversified portfolio.]