Directions: In the following passage, there are blanks, each of which has been numbered. Against every five words are suggested one of which fits the blank appropriately. Find out the appropriate word in each case.

The world of finance can be __(A)_, but understanding key concepts and strategies can help investors make __(B)_ decisions. One important concept is the time value of money, which refers to the fact that a dollar today is worth more than a dollar in the future. This is because money can be invested and earn _(C)__ over time, meaning that a dollar today has the potential to grow into more than a dollar in the future. Risk tolerance is another important consideration when it comes to investing. The level of risk an investor is willing to take on should be carefully __(D)_ against the potential for return. Generally, the higher the risk of an investment, the higher the potential return, but also the higher the potential for loss.

When investing in the stock market, investors have several strategies to choose from. Value investing involves looking for stocks that are trading at a lower price than their intrinsic value, while growth investing involves looking for companies that are expected to grow at a faster rate than the overall market. Regardless of the strategy chosen, it's important to __(E)_ a portfolio across different asset classes to reduce overall risk and maximize potential gains.

Q:

Which of the following words most appropriately fits the blank labelled (E)?

• 1
  Conform
• 2
  Specialized
• 3
  Unvary
• 4
  Diversify
• 5
  None of the above