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What strategy helps you create a well-balanced portfolio for income
investment?
A. Diversifying your portfolio to minimize risk while maximizing rate
of return.
B. Primarily focusing your portfolio on assets that can be converted
to cash quickly
C. Primarily focusing your portfolio on cash investments to protect
capital
D. Diversifying your portfolio to avoid risk and build wealth for
retirement

Sagot :

Answer:

A. Diversifying your portfolio to minimize risk while maximizing rate

of return.

Explanation:

But D could also work. I'm still going with A though because it seems like a better answer

The best strategy for creating a well-balanced portfolio for income is to diversifying your portfolio to minimize risk while maximizing rate of return.

Why is it important to diversify investments?

It is essential to distribute risks and generate greater stability in their income, with investments in different categories with variable behavior.

Therefore, diversifying the investment portfolio helps balance risk, liquidity and profitability.

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