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You can reduce investment risk by investing in:

A. a high yield bond
B. a diversified portfolio
C. real estate
D. corporate stocks


Sagot :

Final answer:

Diversification through mutual funds can reduce investment risk by spreading investments across different assets in a portfolio.


Explanation:

Diversification is a key strategy to reduce investment risk by spreading investments across various assets. For example, investing in mutual funds that hold a mix of stocks and bonds can help mitigate the impact of a single asset's poor performance. By following the principle of not putting all your eggs in one basket, investors can achieve better overall portfolio performance.


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