Basic objective of diversification is:

Increasing Return

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Maximising Return

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Decreasing Risk

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Maximizing Risk

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C Decreasing Risk
Diversification aims to maximize returns by investing in different areas that would each react differently to the same event. Most investment professionals agree that, although it does not guarantee against loss, diversification is the most important component of reaching long-range financial goals while minimizing risk.

Suggest Corrections

Similar questions

What is meant by diversification?

Why is agricultural diversification essential for sustainable livelihoods?

Diversification of plant life appeared due to:

Join BYJU'S Learning Program