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Diversification enables the investor to reduce risk by spreading investments among different companies and types of investing.

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Q: Diversification is an investment strategy to?
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Related questions

What Diversification is an investment strategy to?

reduce risk by spreading investments among several assets.


Define Microsoft's level of diversification strategy it is using?

concentric


Which of these is an attractive strategy for a cash cow division?

concentric diversification


What is Procter and gamble corporate level strategy?

Related diversification


The main advantage of diversification as an investment policy is that it?

Reduces risks to investors


What is the best way to deal with volatility and get the best return on your investment?

Use diversification


What is a diversify?

A diversified trust is a comprehensive wealth management firm that is employee-owned. The firm is based in the Southeast states such as Tennessee, Georgia and North Carolina.


Which one of the following is a defensive strategy Diversification Vertical integration Concentration or Divestiture?

Divestiture


What is an investment strategy designed to do?

An investment strategy is designed to guide investors towards making selections of investment portfolios. These strategies are often used as a technique when investing.


What are the components of the investment process?

1. investor characteristics 2. investment vehicles 3. strategy development 4. strategy implementation 5. strategy monitoring


Can Diversification reduce the weight of an investment in a portfolio compared to an undiversified portfolio?

Yes; that is the definition and purpose of diversification: to spread the invested money over a number of investments so that no single investment has a high percentage of the investor's money, thus reducing risk.


What is diversification strategies of reliance industry?

Reliance is pursuing unrelated diversification strategy, it is conglomerate and has expanded into various markets; namely power sector, telecommunications, infrastructure, retail etc.