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QuizMultiple Choice

Investment Strategy, Risk, and Behavioral Finance — Quiz

Question 1 • Personal Finance

What is diversification?

Answer
A
Spreading investments across assets.
B
Increasing risk.
C
Investing in one asset.
D
Selling investments quickly.

Explanation

Diversification means spreading investments across different assets rather than relying on just one. This can reduce the impact on a portfolio if one investment performs poorly, so the correct choice is “Spreading investments across assets.”

AI-written and checked against the verified answer.

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