When investing, it is a good idea to diversify your portfolio. True False

Diversifying an investment portfolio allows the reduction of unsystematic risk to a minimum.This Statment Is True OR FLSE

WHAT DOES IT MEAN TO DIVERSIFY YOUR PORTFOLIO? A. To invest all your money in one stock or industry. B. To invest in different asset classes and industries to minimize investment risk. C. To invest in one stock or industry to maximize profits. D. To only invest in the top performing stocks in the market.

If you buy enough different stocks, you can diversify out all risk in the stock market. ResponsesTrueTrueFalse

Explain what it means to diversify across investments.

Do Mutual Funds help in Diversification of investment?2 pointsa) Not at allb) May Bec) TrueFalse