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Why is diversification recommended for investors using historic pricing?
  • a)
    Diversification increases the risk of losses.
  • b)
    Diversification provides more significant returns in the short term.
  • c)
    Diversification helps mitigate risk in case of market downturns.
  • d)
    Diversification is unnecessary in historic pricing.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Why is diversification recommended for investors using historic pricin...
Diversification is recommended for investors using historic pricing because it helps mitigate risk in case of market downturns. By spreading their investments across different assets, investors can reduce the impact of poor performance in a single asset and potentially protect their overall portfolio from significant losses.
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Why is diversification recommended for investors using historic pricing?a)Diversification increases the risk of losses.b)Diversification provides more significant returns in the short term.c)Diversification helps mitigate risk in case of market downturns.d)Diversification is unnecessary in historic pricing.Correct answer is option 'C'. Can you explain this answer?
Question Description
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