Answered

10. One strategy for 'protection of principal' by spreading your money among
different savings and investments is called...
a. compounding
b. Rate of return
c. Rule of 72
d. Diversification



Answer :

GinnyAnswer

Final answer:

Diversification is a risk-reducing strategy involving spreading investments. It aims to enhance returns by avoiding overexposure to a single asset.


Explanation:

Diversification is a strategy to lower risk by spreading investments over different options. By not putting 'all your eggs in one basket,' you can enhance consistency of return. For example, a diversified portfolio will earn a return higher than its lowest-performing asset.


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