Asked by Sylvia Joseph on Jun 10, 2024
Verified
The old adage, "Don't put all your eggs in one basket," is very similar to a modern bit of advice concerning financial matters:
A) "Buy low-risk bonds."
B) "Use a medium of exchange."
C) "Diversify."
D) "Intermediate."
Diversify
The attempt to spread investment risk by selecting a variety of investment options within a portfolio.
Adage
A short, pointed and memorable saying that expresses a truth or insight.
- Acquire knowledge of the risk-return tradeoff in investment decision-making.
Verified Answer
MM
michel muemboJun 12, 2024
Final Answer :
C
Explanation :
"Diversify" is the financial advice that most closely aligns with the adage "Don't put all your eggs in one basket," as it suggests spreading investments across different assets to reduce risk.
Learning Objectives
- Acquire knowledge of the risk-return tradeoff in investment decision-making.