The diversification of mutual funds spells safety, because an occasional loss incurred with one investment is usually offset by gains from other investments.

Question

Quizplus · Accepted Answer

Diversification of mutual funds is known to provide a degree of safety to investments because losses from one investment are mitigated by gains from other investments in the mutual fund. Thus, the statement is true.

The Diversification of Mutual Funds Spells Safety, Because an Occasional