2
QuizMultiple Choice

Building a Diversified Investment Strategy — Quiz

Question 2 • Personal Finance

What is diversification?

Answer
A
Increasing risk
B
Avoiding investments
C
Investing in one asset
D
Spreading investments across assets

Explanation

Diversification means spreading investments across different assets rather than relying on just one. This can help reduce the impact of a poor result from any single investment. The correct choice is “Spreading investments across assets.”

AI-written and checked against the verified answer.

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