____ is a portfolio characteristic which leads to reduced risk with good return.
A)Maturity
B)Price-earnings ratio
C)Diversification
D)Stratification
E)Duration

Question

Quizplus · Accepted Answer

Diversification means investing in a variety of assets instead of putting all your money in one place. This reduces the overall risk of the portfolio because if one investment performs poorly, other investments may perform well, balancing out the losses. A well-diversified portfolio can provide good returns while reducing risk.

____ Is a Portfolio Characteristic Which Leads to Reduced Risk