Answered

Julia knows that investing in just one company is risky since there's a chance that the stock's value could decrease. What are some ways she can minimize her risk?

A. Diversify her investments across multiple companies.
B. Invest in different sectors or industries.
C. Consider low-risk investment options like bonds.
D. Regularly review and adjust her investment portfolio.



Answer :

GinnyAnswer

Final answer:

Diversification, time diversification, and dollar-cost averaging are key strategies to minimize investment risks in the stock market.


Explanation:

Diversification is a key strategy for minimizing risk when investing in the stock market. By spreading investments across a variety of companies and industries, diversification helps mitigate the impact of a potential decline in any single stock's value.

Additionally, time diversification suggests that holding investments for an extended period can reduce risk as market fluctuations tend to stabilize over time. Moreover, dollar-cost averaging is another technique where investing a consistent amount at regular intervals can help lower the overall risk of an investment portfolio.


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