Question

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Which investment strategy will increase the diversification of your portfolio?
A. Investing in a certificate of deposit
B. Investing in stocks, bonds, and a mutual fund
C. Investing in stocks from four different companies
o
D. Buying 100 shares of a company

Answer 1

The investment strategy that will increase the diversification is when we invest in stocks from four different companies.

Diversification of portfolio refers to a process of investing one's money in different asset classes in order to minimize the overall risk of the portfolio.

• The investment strategy that will increase this is when we invest in stocks from four different companies.

Therefore, the Option C is correct

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