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American_Bankers_Association

CTFA · Question #94

Diversification__________:

The correct answer is B. Is a way to reduce volatility of your investments. See the full explanation below for the reasoning.

Investment Management

Question

Diversification__________:

Options

  • AAllows you to profit in any market
  • BIs a way to reduce volatility of your investments
  • CIs the only way to profit in the long run
  • DRequires investing in hundreds of funds

How the community answered

(47 responses)
  • A
    6% (3)
  • B
    70% (33)
  • C
    4% (2)
  • D
    19% (9)

Topics

#diversification#volatility reduction#portfolio risk#investment strategy

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