A good way to minimize risk and receive an optimum return on your portfolio is:

Question

Quizplus · Accepted Answer

Diversification is the best way to minimize risk in your portfolio. By investing in a variety of assets, such as stocks, bonds, and mutual funds, you spread your risk and reduce the impact of any one investment on your overall returns. This strategy helps mitigate the risk of losing money in the event that one investment performs poorly. It also maximizes the potential for a solid return on your investment, as you're not relying solely on the performance of a single asset. Buying only risk-free securities (B) may minimize risk, but it also limits potential returns. Blue-chip stock purchases only (C) may provide stability, but it also limits diversification and potential returns. Investing in junk bonds (D) is a high-risk strategy that may yield high returns, but it's also very risky and not appropriate for conservative investors looking for an optimum return on their portfolio.

A Good Way to Minimize Risk and Receive an Optimum