Answer: B
Explanation: In case a sector- wide event causes all stocks to drop
Diversification can help control risk and reduce the volatility of an asset's price fluctuations. However, keep in mind that risk can never be totally avoided, no matter how well diversified your portfolio is.
So, Option B is correct.
The other Options are incorrect as:
Thus Option B is the correct reason for diversification between sectors.
For more information about Diversification refer to the link:
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