Diversification lowers risk! Instead of having all of your money in one place you should split it up. By doing this you will one, lower the risk, and two, if something were to happen, you wouldn't lose as much as you would have by having it all in one place.
When you diversify you don't have all of your eggs in one basket. It lowers risk, and it can actually increase rate of return because you will be able to see what investments do well and put more money into them.
It lowers the risk, as well as increasing the chances of making money. If something happens to the investment you have all your money (ie the stock crashes, the business goes bankrupt) you would lose all your money. if you diversify, you still have all those other accounts making you money.
by diversifying your investments you cant loose all your money if one thing goes wrong and you can put more money in one thing if it is doing better than the others
By diversifying, you run less risk of loosing everything. If you diversify, you'll have a little here and a little there so if you lose something in one place, you'll still have some in another place.
Diversification protects from the possibility of sinking all of your money into an investment that will fail, and subsequently losing all of your money. Diversifying spreads your money out, it's like having numerous backup plans.
Adam the important is that if one of the investments fails you won't lose everything. This leaves you more then one chance of winning. It's the same with drawings the more times your name is in the "hat" the more chance you have of winning.
If you put all your eggs in one basket, you have a HUGE risk of them breaking. You want everything to be separated evenly, then you have a very small risk
Diversification lowers risk! Instead of having all of your money in one place you should split it up. By doing this you will one, lower the risk, and two, if something were to happen, you wouldn't lose as much as you would have by having it all in one place.
ReplyDeleteWhen you diversify you don't have all of your eggs in one basket. It lowers risk, and it can actually increase rate of return because you will be able to see what investments do well and put more money into them.
ReplyDeleteIf you put all your eggs in one basket, it could all break. You want everything to be separated evenly, and in doing so, it's no longer risky.
ReplyDeleteIt lowers the risk, as well as increasing the chances of making money. If something happens to the investment you have all your money (ie the stock crashes, the business goes bankrupt) you would lose all your money. if you diversify, you still have all those other accounts making you money.
ReplyDeleteby diversifying your investments you cant loose all your money if one thing goes wrong and you can put more money in one thing if it is doing better than the others
ReplyDeletetravis
By diversifying, you run less risk of loosing everything. If you diversify, you'll have a little here and a little there so if you lose something in one place, you'll still have some in another place.
ReplyDeleteAutumn
Diversification protects from the possibility of sinking all of your money into an investment that will fail, and subsequently losing all of your money. Diversifying spreads your money out, it's like having numerous backup plans.
ReplyDeleteAdam
ReplyDeletethe important is that if one of the investments fails you won't lose everything. This leaves you more then one chance of winning. It's the same with drawings the more times your name is in the "hat" the more chance you have of winning.
You need to put your eggs into different baskets so that when Dave smashes the eggs in one basket you'll still have other baskets with other eggs.
ReplyDeleteeyezik
when you diversify you will lower the risk of loosing all your money and have a better chance of gaining money.
ReplyDelete-Jacob
When you divide your money into different areas you don't have as big of a risk losing it, as you would if you had it all in one area.
ReplyDeleteIt lowers risk. By having your "eggs" in different areas, the risk goes down of losing all your money at once.
ReplyDeleteIf you put all your eggs in one basket, you have a HUGE risk of them breaking. You want everything to be separated evenly, then you have a very small risk
ReplyDelete