The concept that emphasizes that people should not put all their eggs in one basket is
A)the time dimension of investing.
B)the curse of competitive investment markets.
C)diversification reduces risk.
D)the farmers analogy.
E)liquidity is first.

Question

Quizplus · Accepted Answer

The concept that people should not put all their eggs in one basket is known as diversification. Diversification is a risk management strategy that involves investing in a variety of different assets in order to reduce the risk of loss. By spreading their investments across different asset classes, industries, and geographies, investors can minimize their exposure to any one type of risk.

The Concept That Emphasizes That People Should Not Put All