If your investment portfolio consists of common stock in 20 different companies, you are practicing

Question

Quizplus · Accepted Answer

Diversification is a risk management strategy that involves investing in a variety of assets to reduce the overall risk of a portfolio. By investing in common stock in 20 different companies, the investor is diversifying their portfolio and reducing the risk of losing all of their investment if one company performs poorly.

If Your Investment Portfolio Consists of Common Stock in 20