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Taxes

Question 6 • * HSA 26-27 Economics

To minimize risk, investors should .

Answer
A
not invest when risk is high
B
diversify their investments
C
invest their money in one place

Explanation

Investors can reduce risk by diversifying, or spreading their money across different investments. If one investment performs poorly, others may perform better and help offset the loss. Putting all the money in one place concentrates risk, while avoiding every high-risk investment is not the same as minimizing overall risk.

AI-written and checked against the verified answer.

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