Finance Unbox-ED ($) - Grade 3-5 - Session 021 - Quiz 1

Diversification means that instead of making only one investment you make multiple investments

• True
• False

Diversification is important as it reduces risk

• True
• False

One can never get benefits of diversification without investing in multiple asset classes

• True
• False

Investments in start-ups and fortune 500 companies are examples of how one can make multiple investments within an asset class such as equity investments and still get diversification benefits

• True
• False

One can get benefits of diversification by investing across different countries

• True
• False