People's abilities to bear risk increases with:
A)their abilities to understand the market.
B)their abilities to diversify their asset holdings.
C)their abilities to invest in risky assets over a large time period.
D)their abilities to judge the probability of outcomes.

Question

Quizplus · Accepted Answer

Diversifying asset holdings reduces risk by spreading investments across various assets, which can lead to a more stable overall portfolio and increase the ability to bear risk.

People's Abilities to Bear Risk Increases With