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Why might someone choose to diversify their investments?

User Gal Sosin
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2 Answers

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11 votes

Answer:

C: Reduce both risks and returns.

On Edge.

User Bernie Tschirren
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16 votes

Answer:

When you diversify your investments, you reduce the amount of risk you're exposed to in order to maximize your returns. Although there are certain risks you can't avoid, such as systemic risks, you can hedge against unsystematic risks like business or financial risks.

User Matwilso
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