Through ________,the risk of loss is reduced by spreading the total investment across more stocks.
A) spreading
B) shorting
C) margin buying
D) diversification

Question

Quizplus · Accepted Answer

Diversification is the practice of investing in a variety of different stocks, such as across different industries or countries. By doing so, if one stock decreases in value, there is the potential for other stocks to increase in value and offset the losses. This reduces the overall risk of loss in the investment portfolio.

Through ________,The Risk of Loss Is Reduced by Spreading the Total