_____ is a strategy for reducing risk by buying a variety of items so that the failure of one stock or one business does not doom the entire portfolio.

Question

​_____ is a strategy for reducing risk by buying a variety of items so that the failure of one stock or one business does not doom the entire portfolio.

Quizplus · Accepted Answer

Diversification is a risk reduction strategy that involves buying a variety of items such as stocks, bonds, and other assets to avoid putting all your eggs in one basket. By diversifying your portfolio, you reduce the risk that the failure of one stock or business will have a devastating impact on your overall portfolio.

​_____ Is a Strategy for Reducing Risk by Buying a Variety

_____ Is a Strategy for Reducing Risk by Buying a Variety