Answer: Offset their losses with gains
Explanation:
Diversification reduces the risk of losses because it spreads investment out across different industries that are ideally negatively correlated so that if things in one industry go wrong for instance, things will go right in the other.
For instance, the investor could invest in both Ice cream companies and Hot Beverage companies with the idea being that in winter when the Ice Cream company losses sales, the Hot Beverage company would make up for it and vice versa in the summer.
Diversification therefore works by offsetting losses in one investment with gains in another.
Answer:
hope it helped
Explanation:
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True naturals
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The social psychologist uses extensive training and complex empirical tools to explore the roots of human behavior. There is a new study that found the people are particularity good at accurately assessing the truth about humans' social nature without formal training or tools. So we are the best amateur best psychologist. Many researchers have shown that on average people work harder individual than a group a concept is called social loafing studies, that people feel less responsible in a group than as individuals, phenomena that help to explain horror like genocide and that no knocking the stuff out of doll is not a cathartic.