What is diversification and how can it benefit ... - SS2 Accounting Benefits of Capital Markets: Benefits To Individual Investors Question
What is diversification and how can it benefit investors in the capital market?
Diversification is the practice of investing in a variety of stocks, bonds, and other securities in order to reduce the risk of loss in the event that one investment performs poorly. By diversifying their portfolio, investors can spread their risk across a range of assets, potentially reducing the impact of market volatility on their overall investment performance.
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