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Name and explain (2-3) ways of reducing investment risk.?
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- zman492Lv 72 years ago
(1) Diversification
Make different types on investments. (Stocks, Bonds, Savings, Real Estate, Precious Metals, Collectables)
Within any one type of investment, diversify. For example buy a mutual fun or ETF instead of one or two stocks.
(2) Choose at least some safer investments such as stocks instead of derivatives, bonds instead of stocks, government insured bonds or savings accounts instead of commercial bonds.
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