QUESTION 8 Which of the following is most true about diversification? ...

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Accounting

QUESTION 8

  1. Which of the following is most true about diversification?

    A. Diversification is easy to do if you are managing your own portfolio of stocks and bonds.

    B. Mutual funds offer an easy way for average investors to diversify.

    C. Diversification increases the risk in your portfolio.

    D. A well-diversified portfolio will have much more volatility in returns than a portfolio that consists of only a few stocks.

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