Thinking Mathematically (6th Edition)

Published by Pearson
ISBN 10: 0321867327
ISBN 13: 978-0-32186-732-2

Chapter 8 - Personal Finance - 8.5 Annuities, Methods of Saving, and Investments - Exercise Set 8.5: 50

Answer

The statement makes sense.

Work Step by Step

When investors diversify, they do not invest in only one kind of investment. It is a much safer investment strategy to make a variety of investments, including both low-risk and high-risk investments. This is the fundamental principle of diversification.
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