Investing All Your Money in One Company Is an Example

Diversification involves: A) investing all your money in one company. B) investing all your money in the same type of financial assets, with the same amount of risk. C) investing all your money in a variety of financial assets, with varying amounts of risk. D) None of these statements is true.

Diversification: A) reduces the likelihood that bad things will happen. B) means you're not likely going to be completely ruined by a single unfortunate event. C) increases the likelihood that bad things will happen. D) None of these statements is true.