Creating a portfolio by buying several different types of investments to spread the risk of investing is calledMultiple Choicere-allocation.modulation.formula investing.diversification.

Choosing which types of assets you will invest in is known as _____.A.diversificationB.a long-term strategyC.cash investmentD.asset allocationSUBMITarrow_backPREVIOUS

Multiple Choice QuestionThe process of spreading your assets among several different types of investments to lessen risk is called Blank______.Multiple choice question.asset allocationdifferentiating modelspread model   strategic model

When a portfolio is diversified, what type of risk is reduced?Group of answer choicesunsystematic risksystematic risk

Explain what it means to diversify across investments.

WHAT DOES IT MEAN TO DIVERSIFY YOUR PORTFOLIO? A. To invest all your money in one stock or industry. B. To invest in different asset classes and industries to minimize investment risk. C. To invest in one stock or industry to maximize profits. D. To only invest in the top performing stocks in the market.