BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Meaning: This is a piece of advice which means that one should not concentrate all efforts and resources in one area as one could lose everything. Example: Mr Tan’s financial adviser urged him to be careful and not put all his eggs in one basket by investing all his money on stocks.

Detailed explanation-2: -It is also important to diversify within your stocks and bonds. Within your stock piece, it is important to allocate to companies within different sectors of the market (i.e., technology and healthcare). It is also important to diversify among size of companies in terms of their representation in the overall market.

Detailed explanation-3: -Don’t put all your eggs in one basket is a proverb that warns not to invest all of your resources into a single thing because you might lose everything, as in Don’t put all your eggs in one basket by investing your life savings in a risky stock.

Detailed explanation-4: -Diversification is the spreading of your investments both among and within different asset classes. And rebalancing means making regular adjustments to ensure you’re still hitting your target allocation over time. All are important tools in managing investment risk.