Which of the following is good investment advice?
A)Set high goals and expectations for your investments even if they are unrealistic.
B)Investing in mutual funds is an effective way to diversify if you have $200 per month to invest.
C)If you are not getting the returns you need on your savings,select a more risky investment.
D)If you own a stock that has dropped 50 percent in value,purchase more to average your price down.

Question

Quizplus · Accepted Answer

Investing in mutual funds is a good way to diversify your portfolio, which reduces the overall risk. Additionally, investing $200 per month is affordable for many people and can lead to significant long-term gains. Setting unrealistic goals (A), choosing riskier investments (C), and averaging down on a losing stock (D) are generally not recommended investment strategies.

Which of the Following Is Good Investment Advice