The key to diversification is that the risks one undertakes should be:
A)positively correlated.
B)uncorrelated.
C)negatively correlated.
D)easy to reduce.

Question

Quizplus · Accepted Answer

Diversification is a strategy to reduce risk by investing in a variety of assets that are not perfectly correlated. This means that the risks of the different assets are not perfectly correlated, so the overall risk of the portfolio is reduced.

The Key to Diversification Is That the Risks One Undertakes