14
QuizMultiple Choice

Study Guide and Quiz

Question 14 • GA-Introduction to Business and Technology

What is the best way to deal with volatility and get the best return on your investment?

Answer
A
Invest only in very safe investments.
B
Put your money in a savings account.
C
Avoid investments that create capital gains.
D
Use diversification.

Explanation

Diversification means spreading your money across different investments rather than relying on just one. If some investments lose value, others may perform better, which can reduce the effects of volatility while still allowing opportunities for growth. Choosing only very safe investments or keeping money in a savings account may limit potential returns, and avoiding investments that create capital gains is not a reliable strategy.

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