A portfolio containing a mix of shares, bonds and real estate is likely to be more diversified than a portfolio made up of only one asset class.

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Quizplus · Accepted Answer

A portfolio that contains a mix of asset classes, such as shares, bonds, and real estate, is considered to be more diversified. This is because different asset classes have different risk and return characteristics, and they may perform differently depending on market conditions. By combining multiple asset classes, investors can potentially reduce their overall risk and improve their chances of achieving their investment objectives.

A Portfolio Containing a Mix of Shares, Bonds and Real