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Aleksandr [31]
3 years ago
5

Diversification is important in investing because...

Business
2 answers:
Alenkinab [10]3 years ago
8 0

Diversification is important in investing because "It helps you to balance your risk across different types of investments".

Explanation:

Diversification is a risk management approach that includes investing beyond or within various asset types to depreciate the ups and downs of economic exchanges. In different terms, diversification is thereby not owning all your eggs in one basket. Diversification goes by expanding properties beyond and within various asset types. Because asset types have their own individual financial rounds, when one class is making substantial profits, another may not be functioning as well. By expanding your purchases beyond and within distinct asset categories you’ll be in an immeasurable situation to offset the buoyancy of unique expenses.

san4es73 [151]3 years ago
6 0

 

<u>Diversification is important in investing because the risk associated with the investment is lower. </u>

Further Explanation:

Diversification is the strategy of investing in the market at a lower risk. In this strategy, the company, individual and corporation invest their savings in a different industry. So, the risk for the overall investment becomes lower. If the investor puts all of his savings in one industry and if that industry goes into depression, the whole saving of the investor has become futile. But the investor invests some of his money in two different industries and maybe one goes in depression then the loss occurred can be compensated by the profit from the other industry.  

Types of diversification:

  • Industry diversification: In this type of diversification, the investor invests in the different industries of the market.
  • Assets diversification: In this type of diversification, the investor invests in different instruments and assets of the company. For example, treasury bills, and mutual funds.
  • Geographic diversification: In this type of diversification, the investor invests in a different location. For example, home country investment and foreign country investment.  
  • Individual company diversification: In this type of diversification, the investor invests in a different company at his particular needs.  

Learn more:

1. Learn more about diversification

<u>brainly.com/question/2480636 </u>

2. Learn more about investment

<u>brainly.com/question/5959656 </u>

3. Learn more about risk-free rate

<u>brainly.com/question/7268541 </u>

Answer details:

Grade: Middle School

Subject: International business

Chapter: Diversification

Keywords: diversification, investing, because, the risk associated, lower risk, strategy, individual, compensate by profit, industry, assets, geographic.

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Answer:

e. content; communications

Explanation:

The website content refers to all multimedia and text found on it. Content should always be relevant and aligned with the company's overall communications plan.

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Answer:

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Explanation:

When analyzing the other Disneylandia around the world, we can see a different case in Tokyo Disneylandia, which is the first in the world that does not belong entirely to Disney. Upon being opened under a license agreement in Tokyo, Disney receives only a royalty fee, and Oriental Land Company receives a substantially favorable profit from the existing value of the Disney brand in the world, and from its stable and well-structured operations model .

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Answer:

The multiple choices are given below:

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The correct option is 217%

Explanation:

Overhead applied can be  determined using the  below formula total cost formula:

The total cost of work-in-process inventory=direct material cost+direct labor cost+overhead applied

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Explanation:

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