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Risk in average individual stock can be reduced by placing an...

This question belongs to Commerce Financial Management
Financial Management
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Risk in average individual stock can be reduced by placing an individual stock in

Answer & Solution
Correct Answer: Option B
Risk in average individual stock can be reduced by placing an individual stock in diversified portfolio. A diversified investment is a portfolio of various assets that earns the highest return for the least risk. A typical diversified portfolio has a mixture of stocks, fixed income, and commodities.
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