A strategy that attempts to reduce the overall risk of an entire investment portfolio by investing in a variety of assets is called:

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Quizplus · Accepted Answer

Diversification is the strategy of investing in a variety of assets in order to reduce overall risk. By spreading investments across different asset classes, sectors, and geographies, the losses in one area can be offset by gains in another, resulting in a more stable portfolio. Pooling refers to combining resources with other investors to make larger investments together. Arbitrage is a strategy of taking advantage of price differences between different markets or securities. Weighted average is a method of calculating the average of a set of numbers, in which each number is multiplied by a weight factor. None of these strategies directly address reducing overall risk in an investment portfolio.

A Strategy That Attempts to Reduce the Overall Risk of an Entire