Question

What ways can I reduce risk of loss in my investment portfolio?

What ways can I reduce risk of loss in my investment portfolio?

Homework Answers

Answer #1

Ways which can one can reduce risk loss in investment portfolio
1. Increasing investment in risk free investment can reduce risk.
2. By investment in diversified portfolio can reduce risk because it reduces unsystematic risk
3. Investing more in blue chip companies rather than new stocks can reduce loss.
4. Choosing stocks which are highly negatively correlated can significantly reduce risk of loss.

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