0
To diversify is to minimize your risk through a wide variety of investments. These investments may include bonds, stocks (large cap, small cap, foreign), mutual funds, cash and cash equivalents, and real estate. Diversified portfolios have less risk because the risk is spread out over many different types of investments.
Tiffany Schmitt
Wiki User
∙ 11y agoTo diversify is to minimize your risk through a wide variety of investments. These investments may include bonds, stocks (large cap, small cap, foreign), mutual funds, cash and cash equivalents, and real estate. Diversified portfolios have less risk because the risk is spread out over many different types of investments.
Add your answer:
Earn +20 pts
Why is diversifying crops important in Africa?
Diversifying crops is important in Africa for various reasons. It helps sustain food production and also gives the country various economic products.
Describe how one Latin American country is diversifying its economy?
Brazil is diversifying is economy by making machinery, steel, and chemicals and encouraging cotton farming to support a weaving industry.
Why are African countries diversifying there economies?
to add variety to their economy's.
What were two of the problems of rapid urbanization?
polution in areas and diversifying agricuture
What is the abstract noun of diversify?
The abstract noun forms of the verb to diversify are diversification and the gerund, diversifying.
How has the economy of Luxembourg adjust to the decline of its steel industry?
By diversifying with high-tech and service companies. BTW Follow Me On Instagram Smurfing_Aewsome
What has the author Christopher M Bagnall written?
Christopher M. Bagnall has written: 'Diversifying to meet the changing markets and challenges in a S.M.E.'
Which type of natural selection occurs when the extreme opposites in a phenotype range are selected?
Disruptive selection, also known as diversifying selection.
What evolutionary selection describes greater number at the extreme and few numbers at the center of distribution?
Disruptive selection, also known as diversifying selection.
The mode of natural selection in which both extremes in the range of a phenotype are favored is termed?
That would be disruptive selection.
Diversifying a portfolio of equity securities across sectors and markets will tend to?
Diversifying a portfolio of equity securities across sectors and markets will tend to: 1. a. increase the required risk premium. 2. b. reduce the beta of the portfolio to zero. 3. c. reduce the standard deviation of the portfolio to zero. 4. d. eliminate the market risk. 5. e. reduce the firm-specific risk.
What services does Carsa provide?
CARSA is a company that provides assistance to international businesses by creating and implementing innovative plans, diversifying, and bringing companies together for more variety.
