ECONOMICS
SAVING AND INVESTING
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Compounding
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Diversification
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Appreciation
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Investment
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Detailed explanation-1: -Diversification is a risk management strategy that mixes a wide variety of investments within a portfolio.
Detailed explanation-2: -Diversification is a technique that reduces risk by allocating investments across various financial instruments, industries, and other categories. It aims to minimize losses by investing in different areas that would each react differently to the same event.
Detailed explanation-3: -Diversification is a risk management technique that mitigates risk by allocating investments across different financial instruments, industries, and several other categories. The purpose of this technique is to maximize returns by investing in different areas that would yield higher and long term returns.
Detailed explanation-4: -For example, after diversification of a portfolio of stocks, you’re still left with overall market risk – the movement of the entire market that typically affects all individual stocks.
Detailed explanation-5: -Active Portfolio Management. The aim of the active portfolio manager is to make better returns than what the market dictates. Passive Portfolio Management. Discretionary Portfolio Management. Non-Discretionary Portfolio Management.