Which of the following investments achieves the greatest diversification?
A)Ten international stocks
B)A TSX ETF
C)A balanced mutual fund
D)A GIC

Question

Quizplus · Accepted Answer

A balanced mutual fund typically invests in a diversified mix of stocks, bonds, and other assets. This provides a greater diversification than just owning ten international stocks or a TSX ETF that only tracks Canadian stocks. Additionally, a GIC is not diversified at all, as it is a single fixed-income investment.

Which of the Following Investments Achieves the Greatest Diversification