What is the primary reason for diversifying investments across different sectors and asset classes? Option: To eliminate the possibility of losses in the stock market, To guarantee a steady and predictable return on investments, To reduce the overall risk exposure of the investment portfolio, To maximize returns by concentrating investments in high-growth sectors

What is the primary reason for diversifying investments across different sectors and asset classes?

What is the core principle behind diversifying investments in a stock portfolio?

What is the primary reason investors diversify their portfolios?

What is the key benefit of diversifying your investments across different asset classes?

Why is diversifying investments important?

Why is diversification important in a long-term investment strategy?