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Question

A simple way to make a diversified investment is investing in _______.

A
Stocks
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B
Shares
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C
Mutual Funds
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D
Derivatives
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Solution

The correct option is C Mutual Funds
A simple way to make a diversified investment in investing in mutual funds. Mutual fund is a collective investment that pools together the money of a large number of investors to purchase a number of securities, like stocks, bonds, etc. Investors can sell their mutual funds whenever they want.

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