Which type of investor is most likely to have a diversified portfolio?
A) risk averse
B) risk loving
C) risk neutral
D) risk tolerant

Question

Quizplus · Accepted Answer

Risk averse investors tend to choose diversified portfolios in order to manage and minimize risk. By spreading their investments across different asset classes, sectors, and geographical regions, they can reduce their exposure to individual securities and market fluctuations. Risk loving, risk neutral, and risk tolerant investors may be more willing to take concentrated positions or bet on specific stocks or sectors, which can be more volatile and risky.

Which Type of Investor Is Most Likely to Have a Diversified