The major benefit of diversification is to:
A)Increase the expected return
B)Remove negative risk assets from the portfolio
C)Reduce the portfolio's systematic risk
D)Reduce the expected risk

Question

Quizplus · Accepted Answer

Diversification primarily aims to reduce the expected risk by spreading investments across various assets, thereby minimizing the impact of any single asset's poor performance on the overall portfolio.

The Major Benefit of Diversification Is To