Question

Diversifcation is not jusitifable unless:

Answer 1

Diversification in investing involves spreading investments across different assets or securities to reduce risk.

Step-by-step explanation:

Diversification, in the context of investing, is the practice of spreading investments across various assets or securities. While it does not completely eliminate risk, diversification can help mitigate it by reducing reliance on one single investment. By investing in a range of companies or assets, the ups and downs of individual investments tend to balance out, minimizing the impact of any potential losses.