The most common perception of how to diversity investments is to own many investments (stocks...
90.2K
Verified Solution
Link Copied!
Question
Accounting
The most common perception of how to diversity investments is to own many investments (stocks and bonds, national and international, different industries) so that significant declines in the value of one investment will be offset by gains in others (or at least the loss will be small because no investment composes a substantial part of a diversified investor's portfolio). What other way is there to diversify that history tells us will smooth out returns and help investors avoid losing a substantial portion of their portfolio value?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
