The practice of not putting all of your eggs in one basket is an illustration of ________.
A)variance
B)diversification
C)portion control
D)expected return

Question

Quizplus · Accepted Answer

Diversification refers to investing in a variety of different assets or securities in order to reduce risk. By not putting all of your eggs in one basket (in this case, one type of investment), you are diversifying your portfolio and spreading out your risk. Variance refers to the degree of deviation from the expected return, portion control is not applicable in this context, and expected return refers to the anticipated return on an investment.

The Practice of Not Putting All of Your Eggs in One