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Q: Diversification is important in investing because

  • 1
    It ensures that you only make low-risk investments.
  • 2
    It helps you to balance your risk across different types of investments.
  • 3
    It helps you gain the highest rate of return despite any risks.
  • 4
    It increases your overall risk, which guarantees that you will make more money.
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Answer : 2. "It helps you to balance your risk across different types of investments."
Explanation :

Answer: B) It helps you to balance your risk across different types of investments. Explanation:

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