let me know if this works for u, thanks!
1. How would you manage the risk in your portfolio under a market turmoil situation such
(1) Would diversification work in this situation? Why or why not?
I believe that diversification would be the best solution to manage my portfolio’s risk in a
market turmoil situation like this. Currently, the world’s economy is unstable due to increasing
cases of the COVID-19 virus; therefore, the stock market is not stable as well. In times like this,
it is important to diversify our portfolio since it allocates investments among different financial
instruments and minimizes risk. This way, if some of our investments result in a loss instead of a
profit, profits from other investments might cover this loss, and overall, we might still be able to
profit from our investments.
(2) What investment instruments or products can you use to reduce the risk in your
portfolio? How would they work?
To reduce the risk in my portfolio...
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