The main objective of diversification is to maximize the return of an investment portfolio.

Question

Quizplus · Accepted Answer

The main objective of diversification is not to maximize returns, but rather to minimize risk by investing in a variety of assets. Diversification helps to avoid putting all your eggs in one basket and reduces the impact of any single investment's performance on the overall portfolio. While diversification may lead to lower risk, it may also result in lower overall returns compared to a concentrated portfolio.

The Main Objective of Diversification Is to Maximize the Return