New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    The process of spreading investments across different

    assets or securities to reduce risk is called:
    A Asset allocation Correct Answer Incorrect Answer
    B Risk management Correct Answer Incorrect Answer
    C Portfolio diversification Correct Answer Incorrect Answer
    D Capital budgeting Correct Answer Incorrect Answer
    E Equity financing Correct Answer Incorrect Answer

    Solution

    Portfolio diversification involves investing in a variety of assets to lower the risk associated with any single investment.

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