Question: Determine whether the statement makes sense or does not make sense, and explain your reasoning. Diversification is like saying don't put all your eggs in
Determine whether the statement makes sense or does not make sense, and explain your reasoning.
Diversification is like saying "don't put all your eggs in one basket."
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Part
Choose the correct answer below.
A
This statement does not make sense because having a range of low and highrisk investments can leave your portfolio vulnerable to large scale trends in the market.
B
This statement makes sense because having a range of low and highrisk investments offers protection against the poor performance of a single company.
C
This statement does not make sense because having only highrisk investments can leave your portfolio vulnerable to the poor performance of a single company.
D
This statement does not make sense because having only lowrisk investments can leave your portfolio vulnerable to the poor performance of a single company.
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