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| 50 POINTS | What Is Diversification And What Is Its Purpose ?

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Diversification is the process in which the money is invested in different areas. This is mostly used in long distance financial deals or goals where the risk is very little.

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User Piotr Perak
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Hey You!

Diversification means to make something more diversed, the state of being diversed. It is also a risk management technique that mixes a wide variety of investments within a portfolio. Diversification is the practice of varying products, operations, in order to spread risk. It's purpose is to maximize returns, increasr the risk of your portfolio.
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User Nathan Marotte
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