EconFinLit_EOC2 Which of the following is the BEST example of diversification?
OAperson who has 20% of their assets in cash, 40% of their assets in government securities, and 40% of their assets in stocks
OAperson who has 10% of their assets in cash, 80% of their assets in a savings account and 10% of their assets in a checking account
O Aperson who has 90% of their assets in cash and 10% of theira
O Aperson who has 100% of their assets in stocks
Casn and07 oT their assets in a checking account.

O. A person who has 20% of their assets in cash, 40% of their assets in government securities, and 40% of their assets in stocks

Explanation:

Diversification is the ability of an individual to spread his or her wealth in such a way that, the accrued dividends would not be tied to a single source of income.

For example, having a restaurant business as well as investing in stocks and shares of different companies. From the statement given above, it shows that the person has the most diversified portfolio when compared to other statements.