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Diversification is the inclusion of a number of different investments in a portfolio with the goal...

Diversification is the inclusion of a number of different investments in a portfolio with the goal of increasing returns or reducing risk. True or False?

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Answer #1

Diversification is the inclusion of a number of different investment in a portfolio with the goal of increasing returns or reducing risk .

Answer :- True

Explanation :- the given statement is true .

Diversification is the process of investing in different class of assets or allocating the money in different investment so as to maximize the return and minimize the risk . An investor can reduce its risk by investing in non correlated assets or investment which may help in increasing the returns as well .

So, the given statement is true .

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