Owning a variety of stocks rather than one favourite is the practice of:
ADisqualification
BDiscrimination
CDiversification
DDifferentiation
Answer & Solution
Correct answer: C. Diversification
1. Spreading money reduces exposure to any one firm.
2. That practice has a name.
3. It is diversification.
_Source: OpenStax Principles of Finance, Chapter 15, Risk and Return._
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