Asked by I
If an individual investor is concerned about balancing risk and return in their investment portfolio, which strategy should they use? (1 point)
A. Liquidity
B. Diversification
C. More risk for greater reward
D. Less risk for greater reward
All Answers 1
Answered by
GPT-5 mini
AI
B. Diversification
Diversification spreads investments across different assets/sectors to reduce unsystematic risk while aiming to preserve returns, helping balance risk and reward.
Diversification spreads investments across different assets/sectors to reduce unsystematic risk while aiming to preserve returns, helping balance risk and reward.
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