n NISM Certifications
NSM General NISM
Medium

What does diversification in a portfolio achieve?

Practice question from B10-S3 Financial Planning — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Guarantees returns

  2. Reduces risk by spreading investments across asset classes

    Correct answer

  3. C

    Focuses only on equity investments

  4. D

    Eliminates the need for financial planning

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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