which investment strategy will increase the diversification of your portfolio? a. investing in stocks…

which investment strategy will increase the diversification of your portfolio? a. investing in stocks, bonds, and a mutual fund b. investing in stocks from four different companies c. investing in a certificate of deposit d. buying 100 shares of a company

which investment strategy will increase the diversification of your portfolio? a. investing in stocks, bonds, and a mutual fund b. investing in stocks from four different companies c. investing in a certificate of deposit d. buying 100 shares of a company

Answer

Brief Explanations:

Diversification means spreading investments across different asset - classes to reduce risk. Stocks, bonds, and mutual funds are different asset - classes. Investing in just stocks from different companies (B) is still only stocks. A certificate of deposit (C) is a single type of low - risk investment. Buying shares of one company (D) is the least diversified.

Answer:

A. Investing in stocks, bonds, and a mutual fund