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.
What else can I help you with?
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.
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.'
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 are 5 investment alternatives that I can consider for diversifying my portfolio?
Five investment alternatives for diversifying your portfolio include stocks, bonds, real estate, commodities, and mutual funds. Each of these options offers different levels of risk and potential returns, allowing you to spread your investments across various asset classes for a more balanced portfolio.
What evolutionary selection describes greater number at the extreme and few numbers at the center of distribution?
Disruptive selection, also known as diversifying selection.
What are the benefits of diversifying a portfolio through bonds and funds investments activity?
Diversifying a portfolio through bonds and funds investments can help reduce risk by spreading out investments across different assets. Bonds provide stability and income, while funds offer diversification and professional management. This can help protect against market fluctuations and potentially increase overall returns.
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.
How can you maintain a balance between high risk and low risk investment?
Diversifying your investments will help maintain a balance between high risk and low risk investments.
