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3 years ago

Diversification is important in investing because...

2 answers:

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

Diversification is important in investing because the risk associated with the investment is lower.

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

brainly.com/question/2480636

2. Learn more about investment

brainly.com/question/5959656

3. Learn more about risk-free rate

brainly.com/question/7268541

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:

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Explanation:

The computation of the total period cost under variable costing is shown below:

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2 years ago

The following information is available for Ivanhoe Company. April 1 April 30 Raw materials inventory $10,500$14,000 Work in proc

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Answer and Explanation:

The preparation of the cost of goods manufactured schedule for the month of April is presented below

Beginning work-in-process inventory $4,840

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2 years ago

Identify the two independent clauses in the following compound-complex sentence.

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The two independent clauses in the following compound-complex sentence are.

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Explanation:

Compound sentence and complex sentence together makes a compound- complex sentence. A Clause is a sentence which has one subject or one verb.

The independent clause is a sentence which does not need a supportive sentence to explain it's situation and it makes a statement or asks a question.

And dependent clause is a sentence which begins with when, because, if etc. Therefore, the independent caluses will be the above given two sentences as they are statements and do not need a supportive statement.

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