Which of the Following Is a Drawback of Diversification

question 78

Multiple Choice

Which of the following is a drawback of diversification?

• A) Spreading your investment over many securities may limit your chances for a large return.
• B) The value of a diversified fund could decrease and be worth less than the original investment
• C) Fees associated with diversification are not worth the possible benefits of diversification.
• D) Diversification offers no extra safety as all stock go up in the long term.
• E) None of the above.

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