Which of the following helps to reduce risk?
A)abstain from risk taking
B)obtain more information
C)diversify
D)All of the above.

Question

Quizplus · Accepted Answer

All three options help to reduce risk. Abstaining from risk taking completely eliminates the possibility of any negative outcomes but could limit potential gains. Obtaining more information allows for better decision making and reduces the likelihood of making uninformed choices. Diversification spreads risk across different assets or investments, reducing the impact of any one negative event. Choosing all of these options together provides the greatest level of risk reduction.

Which of the Following Helps to Reduce Risk