Diversification:
A) increases risk and return.
B) decreases risk and return.
C) increases risk.
D) decreases risk.

Name: Diversification: A) increases risk and return. B) decreases risk and return. C) increases risk. D) decreases risk.
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Question

Quizplus · Accepted Answer

Diversification decreases risk by spreading investments across different asset classes and sectors, reducing the impact of any one investment or sector's performance on the overall portfolio.