Question

Complete the sentence. Choose the best answer from the choices provided. Diversification is an investment strategy to __________.

A. reduce risk by investing in precious metals
B. reduce risk by spreading investments among several assets
C.increase risk by buying junk bonds
D. only buy stock in a well-known company

Answer 1

Diversification is an investment strategy to reduce risk by spreading investments among several assets. The correct option among all the options that are given in the question is the second option or option "B". I hope that this is the answer that has actually come to your desired help.