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To lessen risk one common investment strategy isMultiple Choiceto purchase antiques and collectibles.to purchase precious metalsdiversificationfocus solely on high-growth stocks.concentrate on domestic investments

Question

To lessen risk one common investment strategy isMultiple Choiceto purchase antiques and collectibles.to purchase precious metalsdiversificationfocus solely on high-growth stocks.concentrate on domestic investments

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Solution

The correct answer is diversification. This strategy involves spreading investments across various financial instruments, sectors, and other categories to reduce exposure to any single asset or risk. The idea is that a variety of investments will, on average, yield higher returns and pose a lower risk than any individual investment found within the portfolio.

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