Which of the following does not help reduce the risk that people face?

Question

a. buying insurance
b. diversifying their portfolio
c. increasing the rate of return within their portfolio
d. All of the above help reduce risk.

Answer 1

The option that does not help reduce the risk that people face is:

c. increasing the rate of return within their portfolio

While increasing the rate of return is desirable, it does not inherently reduce risk. In fact, seeking higher returns often involves taking on more risk. The other options, buying insurance and diversifying a portfolio, are strategies specifically aimed at reducing risk.