How do I strike a balance between risk-taking and risk aversion while taking bold financial...

Question:

How do I strike a balance between risk-taking and risk aversion while taking bold financial decisions?

Finance:

Finance refers to the management of money or funds for individuals by making investments in various assets like equity, bonds, debentures, currencies, etc. in order to make high profits.

Answer and Explanation:

In order to strike a balance between risk-taking and risk-aversion while taking bold financial decisions, you must try to achieve diversification of your portfolio. You must try to balance out your portfolio by rebalancing it and changing the proportion of risky and risk-free assets based on the type of asset on a regular basis. Such risk diversification will help you earn good returns and reduce risks to a great extent.


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What Is Financing? - Definition & Types

from Corporate Finance: Help & Review

Chapter 8 / Lesson 7
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