To be "diversified" means to hold
A)a single asset.
B)a number of similar assets.
C)different assets to minimize risk.
D)lots of assets to maximize return.

Question

Quizplus · Accepted Answer

Diversification involves holding different types of assets, such as stocks, bonds, and real estate, in order to minimize the risk of losses in any one particular asset. Holding a single asset or a number of similar assets would not provide the benefits of diversification, and holding lots of assets to maximize return may not necessarily result in effective diversification.

To Be "Diversified" Means to Hold