Diversification increases risk.

Name: Diversification increases risk.
Brand: Quizplus
Rating: 4.8 (42 reviews)

Question

Quizplus · Accepted Answer

Diversification is a well-known investment strategy used to reduce risk by spreading investments across multiple assets, classes, or industries. This helps to minimize the impact of a single investment's poor performance on the entire portfolio. Therefore, diversification reduces risk, rather than increasing it.

Diversification Increases Risk