_____ is a strategy for reducing risk by buying a variety of items so that the failure of one stock or one business does not doom the entire portfolio.
A) Downsizing
B) Diversification
C) Retrenchment
D) Exit planning

Question

Quizplus · Accepted Answer

Diversification is the strategy of buying a variety of assets such as stocks, bonds, and real estate to spread and reduce risk. It helps to protect the portfolio against the failure of any one asset by limiting the exposure to any single investment. Downsizing refers to reducing the size of a company or workforce, retrenchment is a strategy of cutting back on business activities, and exit planning refers to a strategic approach for leaving a business.

_____ Is a Strategy for Reducing Risk by Buying a Variety