Elena is excited to invest, but she is worried that she might lose her investment funds by making risky investments. How could Elena use diversification to manage her risk?(1 point) Responses Elena could forego investing altogether. Elena could forego investing altogether. Elena could invest all of her funds into a single low-risk investment. Elena could invest all of her funds into a single low-risk investment. Elena could invest some of her funds into a single low-risk investment and pocket the rest as cash. Elena could invest some of her funds into a single low-risk investment and pocket the rest as cash. Elena could purchase multiple assets from multiple sources.
Elena could purchase multiple assets from multiple sources. By diversifying her investments across different assets, industries, and geographical regions, Elena can reduce the risk of losing all her investment funds if one particular investment performs poorly. This way, even if one investment underperforms, others may still perform well and help mitigate potential losses. Diversification can help Elena manage risk and potentially increase her overall investment returns.
