One of the most important implications of our discussion of risk and return is the benefit of ________.

Question

Quizplus · Accepted Answer

Diversification allows investors to spread their investments across different assets or asset classes. By doing so, they can reduce the overall risk of their portfolio without sacrificing returns. This is because different assets may perform differently at any given time, and if an investor's portfolio is diversified, gains in some assets may offset losses in others. As a result, diversification can provide a higher level of return with a lower level of risk.

One of the Most Important Implications of Our Discussion of Risk