Risk Diversification
Risk Diversification involves spreading investments across various assets to reduce exposure to any single risk, enhancing the resilience of a startup`s financial portfolio.
Benefits
Risk diversification spreads investments across various assets to reduce exposure to any single risk.
Frequently Asked Questions
What is the meaning of risk diversification?
Risk diversification means spreading investments across different assets or sectors to lessen the risk.
What risks does diversification reduce?
Diversification lowers the risk of underperformance by spreading investments across various assets or sectors.
What does diversification refer to spreading risk by putting your money into in financial terms?
Diversification means lowering risk by investing in various assets.
Key Takeaway
Risk diversification lowers risk by spreading investments across a variety of assets.