169k views
3 votes
To minimize risk, investors should.

1 Answer

4 votes

Answer:

You can reduce your investment risk by weeding out stocks with high P/E ratios, unstable management ,and inconsistent earnings and sales growth. Diversify your investment portfolio across investment product types and economic sectors. Diversification reduces your overall risk by spreading it over a variety of products.

Step-by-step explanation:

Here are five better ways to manage investment risk.

  1. The solution to pollution is dilution. Investors should take a cue from environmental experts. ...
  2. Avoid low quality or longer-term bonds. ...
  3. Keep asset allocation constant. ...
  4. Buy into bad markets. ...
  5. Steer clear of actively managed mutual funds.

Have a good day and stay safe!

User Christel
by
6.1k points