____ can be achieved by investing in a set of securities that have different risk-return characteristics.
A) Indexing
B) Capital Asset pricing
C) Diversification
D) Asset allocation

Question

Quizplus · Accepted Answer

Diversification is the process of investing in a variety of securities that have different risk-return characteristics. This reduces the overall risk of the portfolio without sacrificing potential returns. By spreading investments across different industries, asset classes, and geographies, investors can minimize the impact of market volatility on their portfolios.

____ Can Be Achieved by Investing in a Set of Securities