what is diversification in investing?\na. investing all your money in one company.\nb. invest in various…

what is diversification in investing?\na. investing all your money in one company.\nb. invest in various assets with different levels of risk and reward.\nc. split your investment evenly between stocks and bonds.\nd. invest in etfs in a single industry.

what is diversification in investing?\na. investing all your money in one company.\nb. invest in various assets with different levels of risk and reward.\nc. split your investment evenly between stocks and bonds.\nd. invest in etfs in a single industry.

Answer

Brief Explanations:

Diversification in investing means spreading investments across various assets to reduce risk. It involves different types of assets with varying risk - reward profiles, not just stocks and bonds or within a single industry. Investing all in one company is the opposite of diversification.

Answer:

B. Invest in various assets with different levels of risk and reward.