Answer:
Specific investments are less dangerous than others, but all investments take some measure of danger. This measure of uncertainty also involves the rate of return of the investment, meaning for somebody to take a deal of risk; there must also be the existence of great reward. Consider it: You wouldn’t make a huge risk without this being the huge reward. Conversely, investments with less probability typically get lower yields. One way that investors decrease their total danger is by putting in the variety of other securities, e.g., stocks and bonds, or even at other cases of the related security, such as government bonds and corporate bonds. That is called diversification, and it’s an essential idea for any investor to see.
