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 - Page 538: 50


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.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.