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QWhich term refers to the process of spreading investments across different assets to reduce risk?

ID: #10898 Definitions 124 views
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  • A Diversification ✔ ✖
  • B Leverage ✔ ✖
  • C Arbitrage ✔ ✖
  • D Speculation ✔ ✖
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Explanation

Diversification is the process of spreading investments across different assets, such as stocks, bonds, and real estate, to reduce risk. By diversifying, investors can minimize the impact of any single investment's performance on their overall portfolio and potentially increase their chances of achieving positive returns.

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