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20-01-2022
Business

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Which of the following is a way by which risk can be diversified? Multiple choice question. By avoiding projects that are risky By creating a broader portfolio of products through innovation By manufacturing only those products in which a firm has a competitive advantage By taking up new ventures that predict high returns

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anthougo anthougo

28-01-2022

The way to diversify risk is B. By creating a broader portfolio of products through innovation.

What is risk?

Risk refers to the possibility that the unexpected happens. Risk involves uncertainty when the effects of a human activity exhibit undesirable consequences.

Risk Diversification

The process or risk diversification is a technique to reduce risks. It involves the allocation of investments in various financial instruments, industries, and other assets with the aim to maximize returns.

Thus, the way to diversify risk is by Option B.

Learn more about risk diversification at https://brainly.com/question/15236602

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