Andrea has $500 in the bank that she wants to invest in the stock market. she also wants to add $50 per month into this account

Question

tensa zangetsu [6.8K]

1 year ago

5

Andrea has $500 in the bank that she wants to invest in the stock market. she also wants to add $50 per month into this account

from her part-time job. which is the best way for andrea to build up a diversified portfolio of stocks?

SAT

1 answer:

Paha777 [63] · Answer 1 · 2023-06-22T19:05:54+03:00

The best way for andrea to build up a diversified portfolio of stocks is; by putting her money into dollar-cost averaging.

<h3>What is dollar-cost averaging?</h3>

Dollar-cost averaging is defined as an investment strategy in whereby the individual periodically purchases target assets or invests in a certain portion of funds in one security.

This therefore tells us that Dollar-cost averaging would reduce the risk tolerance associated with purchasing large stock securities.

Thus, we can recommend dollar cost averaging as the best way for andrea to build up a diversified portfolio of stocks.

Read more about stocks at; brainly.com/question/14360614