Under the "Don't Put all you eggs in one basket" analogy, the eggs represent individual investments and the basket represents th

Question

Harlamova29_29 [7]

3 years ago

13

Under the "Don't Put all you eggs in one basket" analogy, the eggs represent individual investments and the basket represents th

e overall investment portfolio. Speading your "eggs" allows you to

Business

1 answer:

julsineya [31] · Answer 1 · 2022-11-10T05:11:55+03:00

Answer:

Minimize the possibility that bad luck for a single investment adversely affects your overall portfolio

Explanation:

Diversification

This is simply know as a form of practice that involves putting or dividing the money an individual invests into several different types of investments in order to minimize risk. It uses the analogy "Don't put all your eggs in one basket."

Investing

This is simply known as the act of keeping money aside to boast wealth over time for long-term financial goals such as retirement.

Investment

This is simply regarded as when an individual puts his/her money for long-term growth.

The point of a diversified portfolio is that the spreading of your money, and not putting all your eggs in one basket, reduces your risk so if one does bad you have the other to fall back on.