Question

Diversification is important in investing because
A) It ensures that you only make low-risk investments.
B) It helps you to balance your risk across different types of investments.
C) It helps you gain the highest rate of return despite any risks.
D) It increases your overall risk, which guarantees that you will make more money.

Answer 1

Hello mate

here's your answer

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Option A ✔✔

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Hope it helps you

Answer 2

Hi there. Diversification is important in investing because B) It helps you to balance your risk across different types of investments.

According to professional investors, diversification is the most important component when one wants to reach a long-range financial goals with minimal risk. It is an act of investing among diverse financial instruments, categories, and industries. Example is investing your money in stocks while at the same time investing in variable universal life (VUL) insurance.