Question

How does a diversified investment portfolio reduce investors’ risk of losing money? A. by increasing dividends B. by increasing the rate of return C. by increasing the liquidity of investments D. by spreading investment capital over many investments

Answer 1

It is a by spreading investment capital over many investments

that is, the answer is D

Answer 2

D) by spreading investment capital over many investments, is how a diversified investment portfolio reduce investors’ risk of losing money!