Question

why would a mutual fund, a collection of stocks, bonds and other Securities have less risk than investing in stock alone​

Answer 1

The Answer Is A. Stocks are higher risk than most other securities in a mutual fund, but when averaged with the risk of the other securities, mutual fund risk is not as high as stock risk.

Step-by-step explanation:

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Answer 2

Because of the nature of risk associated with investing in the Stocks.

Step-by-step explanation:

Investing in more than one funds, like mutual funds, a collection of stocks and bonds, etc, is a technique to divide the risk over different investments. Investing only in one investment whose nature is pretty volatile like stocks, is very risky. If a person invests in one volatile investment like Stocks, he is more likely to bear high risks. So investing in more than one thing will divide the risk associated with investing in one stock alone. So it is always preferable to divide your risk by investing in more than one investments.