Which one of the following terms best refers to the practice of investing in a variety of diverse assets as a means of reducing risk?
A)capital asset pricing model
B)systematic
C)diversification
D)unsystematic
E)security market line

Question

Quizplus · Accepted Answer

Diversification is the practice of investing in a variety of diverse assets, such as stocks, bonds, and real estate, as a means of reducing risk. By spreading investments across different types of assets, investors can minimize the impact of any one investment performing poorly. This helps to create a more balanced and stable investment portfolio.

Which One of the Following Terms Best Refers to the Practice