One of the most important implications of our discussion of risk and return is the benefit of ________.

Question

Quizplus · Accepted Answer

Diversification is the best choice as it helps to reduce risk levels while maintaining returns or even increasing returns in some cases. It means investing in a combination of different assets to spread out the risk. By diversifying the portfolio, investors can reduce the impact of negative events and potentially increase returns by avoiding concentration in one asset class. It is an important strategy to manage risk in investing.

One of the Most Important Implications of Our Discussion of Risk