In the context of investment, diversification increases the possibility of earning exceptionally high returns.

Name: In the context of investment, diversification increases the possibility of earning exceptionally high returns.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Diversification reduces risk by spreading investments across various assets, but it also limits the potential for exceptionally high returns since not all assets will perform exceptionally well simultaneously.

In the Context of Investment, Diversification Increases the Possibility of Earning