Diversification is:
A) the process by which risks are shared among many different assets or people.
B) making a market more liquid by being always ready to buy or sell an asset.
C) the interest rate at which one would lend if there were no risk of default.
D) when a borrower fails to pay back a loan according to the agreed-upon terms.

Question

Quizplus · Accepted Answer

Diversification means spreading investments across different assets or people to reduce the risk of loss. It is a commonly used strategy for investors looking to minimize their exposure to any one particular asset or market.

Diversification Is