A diversified portfolio should be less risky than putting your money into a single security.

Question

Quizplus · Accepted Answer

A diversified portfolio spreads the investment across different securities, which reduces the risk of losing all the money if one security performs poorly. In contrast, investing all the money into a single security is high risk as there is no diversification to protect the investment in case of a market downturn or company-specific issues.

A Diversified Portfolio Should Be Less Risky Than Putting Your