Which of the following helps to reduce risk?
A) Abstain from risk taking.
B) Obtain more information.
C) Diversify.
D) All of the above.

Question

Quizplus · Accepted Answer

All of the above options help to reduce risk. Abstaining from risk-taking completely eliminates the possibility of loss but also limits potential gains. Obtaining more information can help one make more informed decisions and reduce uncertainty. Diversification, spreading investments across different types of assets or investments, can reduce overall portfolio risk. Therefore, all three options are important in risk management.

Which of the Following Helps to Reduce Risk