Question

In: Economics

We can reduce financial asset risk by holding a.  one blue chip stock b. gold c. health...

We can reduce financial asset risk by holding

a.  one blue chip stock

b. gold

c. health care stocks

d. a diversified portfolio

Solutions

Expert Solution

Portfolio diversification is the risk management strategy of combining a variety of assets to reduce the overall risk of an investment portfolio.

The correct option is therefore

d. A diversified portfolio.


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