Investors diversify because they are risk-averse.

Name: Investors diversify because they are risk-averse.
Brand: Quizplus
Rating: 4.7 (54 reviews)

Question

Quizplus · Accepted Answer

Investors diversify their portfolio in order to reduce the overall risk and volatility of their investments. By spreading their money across a variety of assets, they are less likely to suffer significant losses if any one investment performs poorly. This shows that investors are generally risk-averse and seek to minimize potential losses.

Investors Diversify Because They Are Risk-Averse