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| 50 POINTS | What Is Diversification And What Is Its Purpose ?

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Diversification is the process in which the money is invested in different areas. This is mostly used in long distance financial deals or goals where the risk is very little.

User Piotr Perak
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Hey You!

Diversification means to make something more diversed, the state of being diversed. It is also a risk management technique that mixes a wide variety of investments within a portfolio. Diversification is the practice of varying products, operations, in order to spread risk. It's purpose is to maximize returns, increasr the risk of your portfolio.
User Nathan Marotte
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