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Investors practise diversification mainly in order to:

AMaximise tax
BMultiply fees
CMatch indices
DManage risk
Answer & Solution
Correct answer: D. Manage risk
1. Extreme outcomes hurt an undiversified holder. 2. Spreading holdings softens those outcomes. 3. So the aim is to manage risk. _Source: OpenStax Principles of Finance, Chapter 15, Risk and Return._
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