Risk averse individuals will diversify their investments because this will

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Risk averse individuals diversify their investments to reduce the variability of their returns. By investing in a variety of assets, they spread the risk and lower the chance of losing money on any single investment. This helps to reduce the overall risk of their portfolio and provides more stable returns over time. Investing in a diversified portfolio has been shown to be an effective way to manage risk and achieve long-term financial goals.

Risk Averse Individuals Will Diversify Their Investments Because This Will