To choose: The term that best completes the given sentence.
Answer to Problem 6AA
The best term for the given statement is “overall”.
Explanation of Solution
The diversification is a strategy of managing risk in which mixes of many types of investments are kept in the portfolio. It reduces the risk of the portfolio. This happens because different types of investments have different level of risk and returns due to which loss in one type of investment does not affect another.
So, having different types of investments and savings lowers the overall risk.
Thus, the best term for the given statement is “overall”.
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