Investors diversify in order to ________.
A)guarantee that they will earn a profit on their investments in stocks
B)minimize the risks of stock ownership
C)develop an appreciation of other cultures
D)earn a lower rate of return for a given amount of risk

Question

Quizplus · Accepted Answer

By diversifying their investments, investors spread their money across different types of assets and industries, reducing the overall risk of their portfolio. This way, if one investment performs poorly, they will not lose all their money as they have other investments that may offset the losses.

Investors Diversify in Order to ________