Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the most common perception of how to diversity inv

The most common perception of how to diversity investments is to own many investments (stocks...

90.2K

Verified Solution

Question

Accounting

The most common perception of how to diversity investments is to own many investments (stocks and bonds, national and international, different industries) so that significant declines in the value of one investment will be offset by gains in others (or at least the loss will be small because no investment composes a substantial part of a diversified investor's portfolio). What other way is there to diversify that history tells us will smooth out returns and help investors avoid losing a substantial portion of their portfolio value?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

I am really struggling with this chemistry problem. I don`t even know how to start.. The problem...

Chemistry
Q

Book Name: Principles of Managerial Finance - 180 Day Option, 14th Edition Define the term finance and...

Finance
Q

Because many drugs work by affecting the function of the synapse, the effect that they produce...

Psychology
Q

R 20 A 5 0 mA 15 mA Enx A 50 cm long metal rod...

Physics
Q

Are you ready for more A bank account is growing exp was 1 200 At...

Basic Math
Q

5 A dice is weighted so that its probability distribution of a weighted dice has...

Algebra
Q

The vector u is shown in red Drag the blue movable point to construct the...

Algebra
Q

Salem Adventures provides tours of scenic locations in Washington State. The company expects tours taken...

Accounting
Q

Complete this question by entering your answers in the tabs below. Perform a least-squares regression...

Accounting
Q

Exercise 9-18 Working with More Than One Cost Driver (LO9-2, LO9-3, LO9-4, LO9-5] The Gourmand...

Accounting
Q

helpRequired informationn [The following information applies to the questions displayed below.] Kubin...

Accounting
Q

Lou Lewis, the president of Lewisville Company, has asked you to give him an analysis...

Accounting