Question

Young or new investors may be advised to diversify by purchasing shares in mutual funds or a variety of:

A) Growth stocks
B) Blue-chip stocks
C) Penny stocks
D) Bond funds

Answer 1

Young or new investors may consider diversifying their investment by purchasing shares in mutual funds that include growth stocks, blue-chip stocks, and bond funds.

Step-by-step explanation:

Young or new investors may be advised to diversify by purchasing shares in mutual funds or a variety of:

1. Growth stocks
2. Blue-chip stocks
3. Penny stocks
4. Bond funds

By investing in a variety of stocks or bonds, such as growth stocks, blue-chip stocks, and bond funds through mutual funds, investors can spread out the risk across different sectors and companies. This strategy helps mitigate potential losses and take advantage of potential gains in the market. It's important for young or new investors to remember to conduct thorough research and seek professional advice before making any investment decisions.