contestada

janice is working on her personal budget. She plans her investments wisely, but still worries about the risks involved with her investments. Which is the best way she can avoid market risks?
Keeping money in a safe
Diversifying portfolio
Investing only in real estate
Investing only in the secondary market

Respuesta :

Diversifying portfolio

Answer:

Diversifying portfolio

Explanation:

This is a risk averse method of spreading capital into different types of investments and assets so that risk in a particular investment can easily be covered by the returns on the others, as different assets and investments rise and fall at different times.

To get the best result , there should be a balance between diversification and concentration  as too much diverse investment could also be potentially dangerous.