Financial advisers frequently advise clients to diversify their portfolios.

a$.$ What does it mean to diversify a portfolio?

to continuously move money between multiple assets

to seek out investments with varying interest rates

to invest in a variety of assets that aren't closely correlated.

b$.$ Why do savers diversify?

to minimize exposure to risk

to maximize the amount of money that is invested in the market

to get a varied perspective on the market