Which of the following is an adequate method of achieving portfolio diversification?
A)Invest in various bonds and stocks.
B)Invest in stocks of different industries.
C)Invest internationally.
D)All of the above.
E)None of the above.

Question

Quizplus · Accepted Answer

Investing in various types of securities, such as stocks and bonds, and diversifying within each type of security by investing in different industries and internationally is the most effective way to achieve portfolio diversification. This helps to spread out risk and minimize the impact of any one investment performing poorly. Therefore, option D - all of the above - is the best choice.

Which of the Following Is an Adequate Method of Achieving