Economics · Economy

With reference to investment principles and risk management, consider the following statements: 1. Diversification reduces overall portfolio risk by spreading investments across different asset classes or sectors. 2. Inflation risk refers to the potential reduction in purchasing power when the return on investments fails to outpace inflation. 3. Fixed Deposits (FDs) are generally considered low-risk instruments relative to equity investments as they are less sensitive to short-term market volatility. Which of the statements given above are correct?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

Correct answer

1 and 2 only

Save this question and verified answer as a clean study sheet with live clickable link.

👥

Challenge your peer aspirants on WhatsApp or Telegram to solve this question!

Online Test Series

Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.

Chapter Practice

Want more practice questions on Economy?

Solve complete topic-wise tests with detailed solutions on GkGet.

Recommended practice questions in Economics · Economy

Which of the following territories was annexed by Lord Dalhousie under the pretext of misgovernance, and not directly through the Doctrine of Lapse?

What was the primary stated reason for the Partition of Bengal in 1905 by Lord Curzon?

Which of the following events is considered the immediate trigger for the launch of the Non-Cooperation Movement by Mahatma Gandhi?

Related Practice Questions