10. One strategy for 'protection of principal' by spreading your money among
different savings and investments is called...
a. compounding
b. Rate of return
c. Rule of 72
d. Diversification

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Respuesta :

Final answer:

Diversification is a risk-reducing strategy involving spreading investments. It aims to enhance returns by avoiding overexposure to a single asset.


Explanation:

Diversification is a strategy to lower risk by spreading investments over different options. By not putting 'all your eggs in one basket,' you can enhance consistency of return. For example, a diversified portfolio will earn a return higher than its lowest-performing asset.


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