Which of the following will reduce the risk accompanying equity (stock) investments?
A) the purchase of shares of a mutual fund that holds the stocks of many diverse corporations
B) the purchasing and holding of equities over a lengthy period of time
C) the purchase of shares in firms doing business in a wider variety of industries and markets
D) all of the above

Question

Quizplus · Accepted Answer

Diversification through mutual funds, long-term holding, and investing in various industries all help reduce risk in equity investments.

Which of the Following Will Reduce the Risk Accompanying Equity