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3. What is the purpose of diversification in investing? a) To reduce risk by spreading...

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Finance

3. What is the purpose of diversification in investing? a) To reduce risk by spreading investments across different assets b) To increase risk by concentrating investments in a single asset c) To maximize returns by investing only in high-risk assets d) To avoid investment fees and taxes 4. Which of the following is an advantage of investing in mutual funds? a) They offer guaranteed returns b) They provide high liquidity c) They allow for diversification without requiring a large investment d) They are insured by the FDIC
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3. What is the purpose of diversification in investing? a) To reduce risk by spreading investments across different assets b) To increase risk by concentrating investments in a single asset c) To maximize returns by investing only in high-risk assets d) To avoid investment fees and taxes 4. Which of the following is an advantage of investing in mutual funds? a) They offer guaranteed returns b) They provide high liquidity c) They allow for diversification without requiring a large investment d) They are insured by the FDIC

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