ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is good about a diversified portfolio?
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increase the risk/return ratio
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limits investors choices to only one or two investment tools
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indicates an investor is a good predictor of the return an investment will have
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decreases risk by investing money in a variety of investment tools
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Explanation:
Detailed explanation-1: -By holding a mix of different types of mutual fund schemes, a diversified portfolio can potentially be less volatile and better able to withstand market downturns. This helps to reduce the overall risk of an investment and leads to more consistent long-term returns.
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