Risk-averse people cut their risks by:
A)diversifying their wealth into physical assets.
B)investing their wealth into similar kinds of assets.
C)investing their wealth only in risk-free assets.
D)diversifying their wealth into different assets.

Question

Quizplus · Accepted Answer

Risk-averse people can lower their risk by diversifying their wealth into different assets. By investing in assets with different levels and types of risks, they can minimize the potential losses from any one particular asset. This approach allows them to spread their risk and reduce their exposure to any single asset or market.

Risk-Averse People Cut Their Risks By