By spreading her investments out over many different assets,an investor achieves

Question

Quizplus · Accepted Answer

By spreading investments out over many different assets, an investor achieves diversification. This helps to reduce the overall risk of the portfolio, as losses in one investment may be offset by gains in another. It does not necessarily guarantee a higher expected return or greater liquidity, and may actually involve increased transaction costs.

By Spreading Her Investments Out Over Many Different Assets,an Investor